IDEAS home Printed from https://ideas.repec.org/a/diw/diwwrp/wr6-6.html
   My bibliography  Save this article

Building Sector: Stimulus Packages Make an Impact

Author

Listed:
  • Martin Gornig
  • Sebastian Weber

Abstract

The sharp slump of the German economy has left its mark on the building sector. Commercial construction has been especially affected by the significant decline in companies' propensity to invest - triggered by the macroeconomic downturn. However, due to the stable development of real wages and the overall labour market as well as targeted supporting programmes, the recession has more or less bypassed residential construction. Public sector construction even increased in 2009, most notably during the later half of the year when the effects of the second stimulus package came into force. Nevertheless, due to idle capacities in commercial construction, only moderate price increases are to be expected. Overall - and in real terms - , 2009 will see little change in German construction volumes compared to the previous year. In 2010, stimulus packages will encourage a noticeable recovery, which - in turn - will have a positive effect on the country's overall economy. All in all, construction volumes are expected to grow by more than two per cent (adjusted for price) in 2010 and the main construction industry will profit disproportionately. From an economic point of view, the investment programmes thus meet their intended goal: stabilisation of the construction sector.

Suggested Citation

  • Martin Gornig & Sebastian Weber, 2010. "Building Sector: Stimulus Packages Make an Impact," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(6), pages 36-42.
  • Handle: RePEc:diw:diwwrp:wr6-6
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.346781.de/diw_wr_2010-06.pdf
    Download Restriction: no

    More about this item

    Keywords

    Housing demand; Construction industry; Forecast 2010;

    JEL classification:

    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    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:diwwrp:wr6-6. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.