EU Zone GDP Steady
New data on GDP growth of 1.5% to 2.0% per annum in the period 2017-2019 is projected for the Euro Zone countries, with little change year-on-year from 2016. Slow and steady growth is predicted for the European economy, augmented by a weak Euro exchange rate, ECB quantitative easing, and oil prices trading at historical lows.
Overall, the recovery of the European economy has boosted construction output growth. In 2016 construction output expanded by 2.5%, 0.5%-point stronger than was expected half a year ago.
The volume of construction output is forecast to increase by 2.9% this year and by 2.4% in 2018. Thanks to the stronger economic upswing than expected half a year ago, very strong improvement in consumer confidence and the continuing loose monetary policy, construction demand develops stronger than was expected, resulting in an expansion of the construction output by 8% in 2016-2018. Thereafter the outturn is expected to moderate in 2019 (+2%).