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German Infrastructure Market forecasted to grow 1.95% in 2015

Fast Market Research announces the availability of a new Business Monitor International report, "Germany Infrastructure Report Q4 2015" on their comprehensive research portal.

Despite a marginal increase in government funding for infrastructure and an increasingly buoyant outlook for the German economy, o ur view that insufficient capital is being deployed in the construction sector remains in place. We forecast a notable slowdown in the overall German construction industry from the 3.7 % real growth in 2014, with our prediction of 1.95% for 2015. The residential sector, rail infrastructure and renewables projects remain the market's bright spots .

From 2015-2024, the construction industry will average annual real growth of 1.5%. Growth will remain positive unless the major downside risk to our forecasts, a souring of the outlook for the eurozone, materialises. The German economy has performed well over the last few quarters, allowing for the government to increase infrastructure funding. However, this has had little impact on our forecasts, given the marginal amount of extra financing being directed towards the sector, as the government maintains strict budgetary targets.

Get More Details on this Report and a Full Table of Contents at Germany Infrastructure Report Q4 2015

Key Trends And Developments

The 2015-2018 federal budget has been adopted by the coalition government, which will see spending on transport infrastructure reach EUR11.9bn. Furthermore, the government has approved financing for Deutsche Bahn's EUR28bn spending plan, which will run up to 2019, which will further the rail sector's outperformance. These financing commitments will constitute the bulk of German investment in the transport sector.

Low interest rates have made mortgages affordable and German real estate has been viewed as a safe haven for European investors. As such, there has been significant growth in house prices during 2014 and growth in the sector has been impressive. We expect this to continue in 2015, although growth will settle to a more sustainable level.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available.  Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

 


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