77th Euroconstruct Conference: European Construction Market Outlook until 2016 – European Construction Market is Reaching Firmer Ground. Summary Report

GDP in the 19 Euroconstruct countries grew by 0.2 percent in 2013 and annual growth is expected to be around 2 percent from 2014 to 2016. New residential construction is likely to show growth well above GDP with rates of about 3.2 percent on average in this period. On the other hand, renovation and modernisation market looses momentum (+1.2 percent p.a.) pulling total residential construction down to around +2 percent p.a. in real terms. Although most Euroconstruct countries are clearly out of the recession, sluggish domestic demand and weak public sector finances will most likely continue to dampen non-residential construction which is expected to increase by only 1.5 percent p.a. on average in 2014-2016. The expected recovery will therefore be protracted because unemployment and public debt levels are high, and as low investments, tight credit supply and financial fragmentation in the Euro area continue to dampen domestic demand. – The Euroconstruct Summary Report provides a macroeconomic analysis and an overview of the European construction industry by sectors (housing, non-residential construction and civil engineering; new and renovation, respectively) up to 2016.