Boston, MA -- (SBWIRE) -- 05/23/2014 -- The Danish construction industry recorded a compound annual growth rate (CAGR) of 1.15% during the review period (2009-2013). Denmark's economy is heavily dependent on exports, particularly from other European countries. The eurozone crisis and resulting economic uncertainty subsequently adversely impacted the Danish economy. The recession in the country during 2008-2009 was largely a result of the collapse of foreign demand for Danish products, which led to a decline in exports and manufacturing. The Danish construction industry's output is expected to record a CAGR of 2.71% over the forecast period (2014-2018). This growth will be largely supported by significant public investments in infrastructural, residential and institutional construction.
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- The Danish construction industry performed weakly due to the financial crisis in 2008-2009 and has continued to struggle. High unemployment, subdued domestic consumption and dwindling exports have resulted in low investments, affecting all construction markets. The forecast-period outlook for construction in the country is more optimistic, owing to signs of improving confidence among consumers and investors.
- Construction value added in nominal terms registered a review-period CAGR of -4.45% to reach DKK73.7 billion (US$84.5 billion) in 2013. Over the forecast period, the construction value added is expected to recover at a CAGR of 1.79%, owing to gradual economic recovery. Over the forecast period, residential construction activities are expected to improve relatively faster than non-residential activities.
- According to a report by the World Bank, life expectancy in Denmark is high, with female life expectancy at 81.4 years and male life expectancy at 76.7 years in 2013. Citizens aged 65 and over accounted for 18.0% of the country's population in 2013, and this figure is expected to increase further over the forecast period. The increase in life expectancy is expected to support the healthcare buildings category, as more hospitals with modern technology will be required.
- Many regions, such as Odense, Copenhagen, Aalborg, Aarhus and Vallensbaek, have recorded a substantial inflow of foreign nationals. According to Statistics Denmark, the number of foreign nationals increased to 53,429 from the fourth quarter of 2012 to the third quarter of 2013. This has been a major concern for both the government and city councils who have tried to provide housing facilities to all foreign nationals. It has, however, resulted in a housing shortage. Several residential construction projects are in progress to overcome this problem, such as new housing districts in Nordhavn harbour to accommodate 40,000 residents, and a new residential complex in Aarhus to house 25,000 residents.
Companies Mentioned in this Report: Hojgaard Holding a/s, MT Hojgaard a/s, Per Aarsleff A/S, DP CleanTech Group Ltd, NCC Construction Danmark A/s
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