The construction industry in Europe is losing some momentum, as the Ifo Institute reports. According to this, the benefits this year are expected to increase by 2.7 percent. In the previous year, the increase was 3.9 percent, as calculated by the research network Euroconstruct, to which the institute belongs. In the medium term, according to the economic experts, the pace of growth is expected to slow further, reaching only 1.4 percent by the end of the decade. “Among the causes include the well-utilized capacities of the construction industry, the high prices for residential real estate, but also economic policy risks such as Brexit,” says Ifo expert Ludwig Dorffmeister.
While building construction will noticeably lose momentum from 2018 to 2020, civil engineering is expected to set a remarkable temporary spurt this year and next, it is said. With an increase of around 4.5 percent each, Euroconstruct expects record growth.
According to the Ifo Institute, construction activity will fall in three Member States in 2019 and then in five Member States in 2020. These include Finland, Sweden, Slovakia, Hungary and also Germany. “In view of the market volumes achieved in the meantime and the rather manageable losses, there is no reason to panic”, says Dorffmeister.
Building activity in Europe will weaken, according to the Ifo Institute. Photo: Editorial staff