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France Infrastructure Report Q1 2014

France construction market contracted by 2.7% for the first nine months of 2013


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2014-01-09 06:39:01 - France Infrastructure Report Q1 2014 - a new market research report on companiesandmarkets.com

Our estimates for a contraction in France´s construction sector in 2013 have been reinforced by official data reporting negative growth of 2.7% in the first nine months of the year. The industry has been contracting consecutively since 2008 and we believe that the recession has continued in 2013 as a result of week macroeconomic recovery. Our Country Risk team estimates 0% GDP growth for 2013 and a slight recovery at 0.5% real growth in 2014. On that basis, we are also more optimistic towards 2014 when we expect the construction industry to return to low but positive growth at 0.5% in real terms supported by the development of transport infrastructure projects.

Our slight optimism for the French construction industry comes on

 

 

the back of growth in the infrastructure industry, which we expect to outperform the overall construction sector. Buoyed by growth in the transport segment, we expect the share of infrastructure in the total value of the construction industry to increase from an estimated 18% in 2014 to 25% by 2022. This will lead to average annual real growth of 1.7% in the construction sector over the period.

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