Press release Euroconstruct RS PRAHA, a.s. Friday 29.11.

2013 page 1

&


RS PRAHA, a.s.
Engineering & Consulting
Organisation
Prask 18, 110 00 Prague 10
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Euroconstruct
Tel.: (00420) 549 133 435
info@[Link]
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Press Release

76
th
Euroconstruct Conference in Prague:

Construction in Europe is at a low point - it will start to grow
slowly next year

This year represents the lowest point of development for volume of construction. Starting
from 2014, construction output will again start to increase, although at a very slow pace.
This is the development forecast by Euroconstruct, the leading European research group for
research and analysis of the construction industry, which includes 19 European countries
(EC19).

Press release Euroconstruct RS PRAHA, a.s. Friday 29.11.2013 page 2



Development of construction output is significantly related to the state of the economy. The
state of household, company and state budgets is reflected in willingness to invest in new
construction or renovation of existing buildings. A standstill of growth in the economy in the
GDP indicator after 2007 and 2011 was fundamentally reflected in a rapid decline in
construction output in all types of construction (residential, non-residential and civil
engineering). The total volume of construction in Euroconstruct countries decreased from
2007 to the present year by 22%, i.e. EUR 360 billion (in constant prices). In the group of
Western European countries (EC15), this drop in production is very significant, the current
value (EUR 1 214 billion) being comparable with the level in the middle of the 1990s. It must
be added that 60% of this decline is attributed to Spain. The countries of Central and Eastern
Europe (EC4) are as a whole more successful in this respect, because their current value
(EUR 70 billion) is comparable with 2006/2007, when these countries were still undergoing
rapid growth (from 2003 until 2008 growth by 42%).










Press release Euroconstruct RS PRAHA, a.s. Friday 29.11.2013 page 3



Total construction output
(% change in real terms)
Estimate Forecasts Outlook
Country 2010 2011 2012 2013 2014 2015 2016
Austria -3,9 2,5 2,5 0,5 1,2 1,3 0,8
Belgium 0,4 4,3 0,5 -1,3 1,2 1,6 1,7
Denmark -6,4 5,2 -1,3 2,4 3,3 4,2 5,3
Finland 6,4 2,4 -3,7 -2,7 0,5 1,6 2,8
France -5,9 4,3 0,3 -2,8 -1,5 0,9 2,2
Germany 2,5 5,2 -1,2 0,3 2,7 1,2 0,7
Ireland -28,1 -17,5 -16,8 -3,5 9,8 8,2 10,6
Italy -6,0 -2,6 -6,3 -3,3 -0,3 1,1 1,7
Netherlands -9,4 3,8 -7,2 -5,0 0,4 3,4 5,1
Norway -0,9 6,3 5,5 3,7 3,6 3,7 2,0
Portugal -6,2 -10,0 -15,5 -16,5 -3,0 2,0 3,0
Spain -17,8 -20,4 -31,8 -23,0 -6,7 -0,5 2,9
Sweden 4,4 3,1 -2,4 -0,4 1,6 2,9 2,2
Switzerland 2,8 2,6 2,6 2,8 3,6 1,2 1,2
United Kingdom 6,7 2,1 -7,8 -1,1 2,4 3,1 2,5
Western Europe (EC-15) -3,5 0,0 -5,4 -2,7 0,9 1,7 2,1
Czech Republic -7,3 -3,8 -7,7 -8,2 -4,2 -0,9 1,2
Hungary -9,4 -9,7 -4,3 1,3 7,4 6,4 6,3
Poland 4,6 11,6 0,0 -8,9 3,5 4,4 5,6
Slovak Republic -3,6 -2,8 -13,8 -7,8 -0,8 1,8 2,2
Eastern Europe (EC-4) -1,1 4,1 -3,2 -7,7 1,9 3,3 4,6
Euroconstruct Countries (EC-19) -3,4 0,3 -5,2 -3,0 0,9 1,8 2,2
Source: Euroconstruct (76
th
conference)

Construction Output by Segments (EC19)
(% change in real terms)
Estimate Forecasts Outlook
Country 2010 2011 2012 2013 2014 2015 2016
Residential -1,9 1,9 -4,2 -2,2 1,4 2,2 2,3
Non-Residential -5,3 0,0 -4,6 -3,4 0,0 1,4 2,3
Civil Engineering -3,6 -2,4 -8,2 -4,0 1,2 1,6 1,7
Total construction output -3,4 0,3 -5,2 -3,0 0,9 1,8 2,2
Source: Euroconstruct (76
th
conference)

It seems that the period of turbulence, which has been accompanying European residential
construction since 2007, is coming to an end this year. If we compare the volume of
construction output in 2007 with the forecast volume at the end of 2013, we can see a
decline by more than 26% (in constant prices). The forecast for further development for
2014 estimates growth by +1.4%, by +2.2% in 2015 and by +2.3% in 2016.
Press release Euroconstruct RS PRAHA, a.s. Friday 29.11.2013 page 4


In 2012, residential construction in Euroconstruct countries (EC19) made up 32.6% of the
total volume of construction and even 42.5% in the countries of Central and Eastern Europe
(EC4). Construction of new non-residential buildings dropped this year by more than 5%, the
same as last year. The decline is expected to slow down in 2014 (-1.0%) and the outlook for
new construction for the following years is already in the black, specifically, +1.4% and
+2.9%. Western European countries will however grow more slowly than Eastern European
ones. There is a significant share of renovation in the non-residential construction building
sector (almost 50% in Western European countries). The volume of renovation did not
decline to such an extent in past years (at most -3.4% in 2013) and this partially balances out
the overall decline in non-residential construction.

Since 2008, most civil engineering construction projects in the majority of countries have
been delayed, downsized or completely cancelled, this being due to stretched budgets or the
inability to secure financing. It is expected that GDP will gradually increase slightly, but
problems with debt and budget deficit will continue to stand in the way of more significant
investments. The largest market for civil engineering construction is France, with a value of
EUR 48.1 billion and right behind it is Germany with EUR 47.4 billion. Yet in 2010, it was still
Spain, which represented the largest market with more than EUR 48 billion. This year, it
would seem that Spain will achieve a volume of only EUR 10.5 billion and has still not
reached the expected minimum. Western and Eastern European countries alike are
expecting the decline to slow down considerably starting from 2014 or already a turnaround
towards growth.

Author: RS PRAHA, a.s.
E-mail: conference@[Link], source of data: Euroconstruct (76
th
conference)

Results from the last EUROCONSTRUCT conference are now available!
You can order detailed Euroconstruct Country Reports on each country and an overall
summary and analysis of individual construction fields, the Euroconstruct Summary Report
from the Euroconstruct representative in your country or write to
conference@[Link].

Euroconstruct is a group of 19 specialised research organisations in Europe, which has been active since 1975. Over its
period of operation, it has gained international recognition, both thanks to its unique nature and also especially thanks to
the high quality of information offered. Euroconstruct regularly provides analyses of the construction market including
expert forecasts of further development. The following are member countries: Austria, Belgium, Czech Republic, Denmark,
Finland, France, Germany, Great Britain, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Slovakia, Spain,
Sweden, and Switzerland.

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