European construction market: dynamics of development

EU 2016 Building Market

Leaders in terms of the growth of the EU construction market in 2016 were Montenegro (47.4%), Greece (22.7%), Ireland (18.3%) and Sweden (9.3%). 2016 was unsuccessful for the builders of Eastern European countries: Lithuania, Slovakia, Poland, Bulgaria, Slovenia, Latvia and Hungary.

Montenegro shows a positive growth dynamics for six consecutive years ( 2011-2016 ) on average by 28.3% per year. Despite the increase in the tax press and the massive withdrawal of production abroad, the Greek market shows a positive rate for three years ( 2014-2016 ) with an average of 13.7% per year. Ireland has also been developing steadily for four years ( 2013-2016 ) with an average growth rate of 11.4%. Sweden ( 2014-2017 ) and the UK ( 2013-2017 ) show a positive trend with average annual market growth rates in recent years of 6.5% and 4, 8%.

EU 2017 Building Market

As of 16.02.2018 year, Eurostat provided data for 2017 not for all countries. According to available data, the leader was the outsider in 2016 - Hungary (29.5%), which not only returned lost positions in 2016 (-18.8%), but was able to show growth compared to 2015. Other outsiders in 2016 also pulled ahead. The European Union responded to the results of 2016 and depressive influence is not rooted. The laggards began to catch up with Central Europe after the short-term fall of local markets.

Latvia (19.4%), Slovenia (17.8%), Poland (14%) and Lithuania (9.5%), despite impressive figures, managed to return to the position of 2015, but not fully . Bulgaria (4.8%) only partially compensated for the decline in the construction market in 2016 (-16.6%). During the period 2015-2018, Bulgaria shows positive dynamics with an average growth rate of 1.6%.

The three major economies of Europe - Germany, France and Italy - have shown a general trend of improving the situation in the construction sector. The German construction market for the past 10 years has maintained a more or less stable condition, or has grown (except for 2015). France after a prolonged decline during the decade showed an increase of 3.3%, which may be the beginning of the recovery process. Italy in 2016 managed to reduce the rate of decline to 0.3% and there are hopes that Italy will show positive results for 2017 in the construction and production of construction materials.

For Ukrainian companies, focused on the export of building materials, favorable conditions for entering foreign markets. In addition to such capacious and stable markets as Germany, Austria, Sweden are interesting and not so capacious, but fast-growing markets of Eastern Europe with a lower level of competition during periods of growth.