Press Release

92nd EUROCONSTRUCT Conference
Embargo: 12 November, 2021 - 09:00 CEST

Dynamic recovery in European construction in 2021 and 2022

According to the new estimate, the total construction output in the Euroconstruct area decreased by 4.7% in 2020, a more moderate decline than expected six months ago. Also, the final results for the current year as well as the new short-term forecast have been improved, even though slowing down in the mid-term.
 

The synchronic international recovery, the use of infrastructure works as a classic fiscal policy measure, the introduction of generous incentives for building renovation and upgrade, are some of the sectorial factors that support the positive outlook and its overall improvement, in a more general context of economic upswing and confidence index growing in all countries.
 

The level of construction output in 2021 is set at 1,740 billion euros that, after the difficult year 2020, already represents a fully recovered loss, thanks to an important leap of 5.6%. At a country level, the situation is very variable: in seven countries the pre-crisis level has already been significantly overtaken, in six others the market capacity this year is flat if compared to the 2019 level, while in the remaining six the gap is still negative, with one big country that still has to re-absorb around a 10% negative gap with respect to pre-crisis level.
 

The new short-term outlook is defined by a lively growth next year (+3.6%) and by an increase of no more than 1.5% in the next two-year period. Some elements of concern may impact the general positive scenario, these are coming from the supply side, not only in terms of raw material prices but also in terms of labour shortage and may also derive from the direction of public support.
 

All non-residential construction will show a relatively better performance in the near future, against a more moderate increase in the level of expenditure for housing: in particular, for civil engineering, a growth rate close to 3% per year, is estimated, not so far from that expected for non-residential building (+2.5% on average 2022-2024), while for the biggest European market the slowing path should be more pronounced (+1.6%).
 

At a country level, the positive development will be sustained by the strong growth (more than 4%) in Ireland, Spain, Hungary and the United Kingdom; a flat trend is expected for Germany and Switzerland, while sectorial output should be shrinking in Finland and Sweden.

National trends in the EUROCONSTRUCT area (in real terms)

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