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Construction Industry: No New Momentum from Additional Infrastructure Investments for Now

Press Release of November 20, 2013

Following a decline last year and stagnation in 2013, the construction industry's economic prospects for 2014 are looking noticeably brighter. DIW Berlin expects more than six percent nominal growth for construction in Germany, or four percent in real terms, primarily as a result of persistently brisk residential construction activity and recovery in public-sector building. The core construction industry should benefit most from this upward trend. Further growth expectations for the construction industry are also fueled by the ongoing coalition negotiations. Additional investments, for example for transportation infrastructure and energy-efficient refurbishment of buildings, are under discussion. However, a significant time lag is to be expected before the effects of potential investment programs would have an impact on the construction industry. In addition, the announcement of funding measures in the field of energy-efficient refurbishment is also likely to delay decisions, as residential property owners would first wait for the improved financing conditions.