Construction activity in Europe: Anxiously awaited upswing
Further results of the 54th EUROCONSTRUCT winter conference 2002

In 2002 European construction volume stagnated at approximately €953 billion, and also in 2003 no one expects an end to the recession in European construction. For 2004 and 2005 a moderate rise in construction volume in Europe is forecast by the EUROCONSTRUCT network (with the Ifo Institute as its German partner) amounting to +1% and +2% respectively. Real construction volume will reach a new maximum of ca. €990 billion in 2005. Great Britain and Spain alone will contribute approximately €28 billion to the absolute increase of approximately €38 billion (2002 to 2005). Germany, however, with its strong weight in European construction activity will prevent major growth since the building recession will not be overcome in 2003 and since barely more than stagnation is expected in 2004. As long as this important construction market does not expand significantly, there is little hope for a strong construction upswing in Western Europe. Central Europe can expect a steep growth path already in 2003 with above-average expansion of building activity. Indications of a stronger synchronisation of construction activity in Europe are not evident.