Public construction is sluggish
Unlike residential and commercial construction, public construction is sluggish.
In 2017, investment was flat, as on average over the past 15 years. Of late, new
orders have recovered, probably owing to the full state coffers, whereas building
permits continue to stagnate.
Although the Energiewende, the German energy
transition, together with investment in digital infrastructure and the envisaged
restructuring of defence spending imply higher investment potential, it is unlikely
to materialise, given the numerous challenges besetting major public projects.
For 2018, we therefore expect public construction investment to inch up only
moderately by around 1% compared with the previous year.
EU Forecast
euf:ba18h:108/nws-01