According to calculations by the Euroconstruct research group, to which the ifo Institute also belongs, the European construction industry has overcome the Corona slump. Euroconstruct thus expects construction volume to grow by 3.6 percent this year. According to Euroconstruct, construction volume had already grown by 5.6 percent in 2021, but had fallen by 4.7 percent in 2020.
With an increase of 7.1 percent, residential construction showed the strongest growth in 2021. Civil engineering also significantly exceeded its pre-crisis level in 2021. However, non-residential building construction is still struggling: already the hardest hit by the pandemic in 2020, with a decline of 7.3 percent, it also fell short of the pre-crisis level in 2019 in 2021.
The research group also points out that prices for construction services increased in many countries in 2021. In Germany, for example, the price increase was 9.1 percent, and in Hungary and Italy it was over 10 percent in both cases. According to Euroconstruct, global supply bottlenecks for building materials and precursors play a significant role in connection with the price increase.
Source and further information: ifo.de
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