New Construction research report from Timetric is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 08/14/2013 -- The Czech construction industry saw a steady decline in activity during the review period, registering a CAGR of -5.65%. The country's export-oriented manufacturing sector observed a fall in investment following the financial crisis. This, along with a decline in employment and low wage growth, led to a steady fall in domestic economic activity and demand for new construction projects. Supply has been hampered as developers are wary of the economic situation and have postponed new projects until conditions improve. The industry is expected to regain momentum over the forecast period, with growth expected at a moderate CAGR of 2.13%. Future growth will be aided by a recovery in business confidence, an increase in the number of smaller households, government plans to increase nuclear energy use to 50% of total energy consumption by 2060 and an expected increase in minimum wages, the first since 2007.
View Full Report Details and Table of Contents
- The Czech economy contracted by 1.3% in 2012. This was mainly due to weak private consumption, gross fixed capital formation and a sharp drain in inventories. Private consumption declined by 3.6% in 2012, from 0.7% growth in 2011, owing to a slowdown in disposable income, labor markets and fiscal austerity measures. Gross capital formation also contracted by 3.3% in 2012 as investments slowed down due to weak export markets and excess available capacity.
- The unemployment rate rose marginally from 6.7% in 2011 to 6.8% in 2012. Weak economic growth prospects and the government's fiscal austerity measures are expected to continue to negatively impact the unemployment situation in 2013. Unemployment is expected to reach 7.5% in 2013 and increase to 7.9% in 2014. However, it is expected to ease gradually from 2015 as domestic demand and the external environment improves.
- The Czech Republic's construction industry continued its weak performance in 2012; construction output declined by 6.5%, while new orders contracted by 18.4%, and the number of building permits fell by 8.8% in 2012, compared to the levels recorded in 2011. The value of the construction industry declined by 20.8% in 2012, compared to the level in 2008.
- The industry is expected to decline further by 0.3% in 2013, due to low confidence among private investors and the restricted potential of the federal budget, as the government imposes specific austerity measures to control rising public debt.
- There has been an increase in the number of smaller households in the Czech Republic, owing to an increase in the number of people living without partners, an increase in the number of senior citizens, single-parent households, and a decline in the number of marriages. The number of single-person households grew by over 15% in the 1990s and is estimated to have increased by 10-20% per annum between 2001 and 2011. The rise in the number of smaller households is expected to increase demand for housing.
Companies Mentioned in this Report: Metrostav a.s., OHL ZS, a.s., Eurovia, a.s., BORETA, spol. s r.o., KOCI a.s.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Construction research reports at Fast Market Research
You may also be interested in these related reports:
- Construction in Mexico - Key Trends and Opportunities to 2017
- Construction in Western Europe - Key Trends and Opportunities to 2017
- Construction in Denmark - Key Trends and Opportunities to 2017
- Construction in Russia - Key Trends and Opportunities to 2017
- Construction in Ireland - Key Trends and Opportunities to 2017
- Construction in Vietnam - Key Trends and Opportunities to 2017
- Construction in India - Key Trends and Opportunities to 2017
- Construction in Finland - Key Trends and Opportunities to 2017
- Construction in Portugal - Key Trends and Opportunities to 2017
- Construction in Greece - Key Trends and Opportunities to 2017
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)