Market Research Report
Construction in France - Key Trends and Opportunities to 2025
|Published by||GlobalData||Product code||960773|
|Published||Content info||53 Pages
Delivery time: 1-2 business days
|Construction in France - Key Trends and Opportunities to 2025|
|Published: January 19, 2021||Content info: 53 Pages||
Prior to the Coronavirus (COVID-19) outbreak, the French construction industry grew by 2.6% in real terms in 2019. However, with the disruptions caused by the COVID-19 outbreak and the subsequent lockdown measures, the industry was severely impacted in 2020. According to Eurostat, the French construction industry contracted by 17.3% year on year (YoY) in the first three quarters of 2020. The industry's output in the final quarter of that year could be further affected by the second lockdown imposed in the country from late October to mid-December 2020, owing to an upsurge in COVID-19 infections. Although construction activities were exempted from the lockdown restrictions, work could be affected by labor shortages amid travel restrictions and social distancing measures. As a result of the latest lockdown, in November 2020 the Central Bank of France said that construction activities could fall by 8% of their normal levels.
Reflecting the disruptions caused by the pandemic, coupled with the weak outlook for economic growth, GlobalData estimates that the construction industry contracted by 13.6% in real terms in 2020; however, it is expected to rebound and grow by 8.6% this year. The sharp growth in 2021 will mainly be driven by the very low starting base in the previous year, particularly in the second quarter. Although short-term investments in the industry could be affected by the weak consumer and investor confidence, over the forecast period, output will be supported by government spending on overall infrastructure, particularly in preparation for the upcoming summer Olympic games in Paris in 2024. The government plans to spend EUR6.8 billion (US$8 billion) to develop and refurbish infrastructure by that year. Long-term growth in the industry will be also driven by the government's plan to invest EUR80 billion (US$94.4 billion) on transport infrastructure between 2018 and 2037, of which EUR2.4 billion (US$2.8 billion) was earmarked to be invested in the first two years alone. On a positive note, work is progressing on the EUR31.7 billion (US$37.4 billion) Grand Paris Express Metro Rail project, which is claimed to be the biggest urban mobility project currently underway in Europe.
This report provides detailed market analysis, information, and insights into the French construction industry, including -
This report provides a comprehensive analysis of the construction industry in France. It provides -