IDEAS home Printed from https://ideas.repec.org/a/diw/diwdwr/dwr10-1-1.html
   My bibliography  Save this article

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

Author

Listed:
  • Martin Gornig
  • Claus Michelsen
  • Laura Pagenhardt

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.

Suggested Citation

  • Martin Gornig & Claus Michelsen & Laura Pagenhardt, 2020. "Construction Industry an Important Pillar of the Economy: Investment Assistance Taking Effect," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 10(1/2), pages 3-13.
    • Handle: RePEc:diw:diwdwr:dwr10-1-1
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.702207.de/dwr-20-01-1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Construction industry; residential construction; public infrastructure; economic outlook;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwdwr:dwr10-1-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.