Construction Industry an Important Pillar of the Economy: Investment Assistance Taking Effect

Martin Gornig, Claus Michelsen and Laura Pagenhardt

DIW Weekly Report, 2020, vol. 10, issue 1/2, 3-13

Abstract: The construction industry is increasingly becoming a key pillar of the business cycle in Germany. DIW Berlin’s construction volume calculation indicates a real expansion of construction services by around three percent each year over the next two years. In nominal terms, sales in the construction industry and its related sectors will grow by around 6.5 percent in 2020 and almost six percent in 2021. Residential construction remains the cornerstone of the upswing, but construction activity in the public sector will also expand significantly over the next two years. Due to the current weak state of the economy, commercial construction is developing somewhat less dynamically. A long-term investment program would be a sound method of increasing growth potential; it would also improve business prospects in the construction industry for the foreseeable future and make the industry more willing to increase construction capacity.

Keywords: Construction industry; residential construction; public infrastructure; economic outlook (search for similar items in EconPapers)
JEL-codes: E32 E66 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.702207.de/dwr-20-01-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:diw:diwdwr:dwr10-1-1

Access Statistics for this article

DIW Weekly Report is currently edited by Tomaso Duso, Marcel Fratzscher, Peter Haan, Claudia Kemfert, Alexander Kritikos, Alexander Kriwoluzky, Stefan Liebig, Lukas Menkhoff, Karsten Neuhoff, Carsten Schröder, Katharina Wrohlich and Sabine Fiedler

More articles in DIW Weekly Report from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().