Construction in France – Key Trends and Opportunities to 2015 by Timetric

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									Construction in France – Key
Trends and Opportunities to 2015
Reference code: CN1010IR

Published: May 2012


1      Executive Summary

        France possesses the second-largest economy within the European continent, and the fifth-largest
        economy in the world. France was relatively less affected by the global economic crisis than other
        developed European countries, as the country recovered quickly and recording a positive annual GDP
        growth rate of 1.5% in 2010 after an annual growth rate of -2.5% in 2009. In addition to the country‘s
        centralized and conservative economic practices, one of the main factors preventing significant economic
        contraction during the global financial crisis was the EUR26 billion stimulus package announced by the
        government in 2008, which primarily focused on investments. In addition, the government announced
        EUR11.5 billion worth of tax breaks and credits for investments made in 2009.

        The French construction industry retained a weak growth in 2010, and its growth rate decelerated by
        4.2% in 2010 compared to 2009. The main factors behind the overall decline in the French construction
        activity and growth are the country‘s low tourist inflows and slow industrial production, which declined by
        8.8% in 2010, alongside a period of decelerated growth in the residential construction market.

        Residential construction represented the largest market within the French construction industry in 2010,
        when it accounted for share of 46.2% of the industry value, which corresponds to EUR49.1 billion.
        Timetric projects the market will retain its dominant position over the forecast period (2011–2015), and
        will increase in value at the fastest growth rate among the French construction markets, at a compound
        annual growth rate (CAGR) of 4.22% over the forecast period.

        Infrastructure construction, the second-largest construction market, increased in value a CAGR of 2.69%
        during the review period (2006–2010), despite recording an annual growth rate of -4.9% in 2009 and -
        4.6% in 2010. The infrastructure construction growth was supported by a government investment of
        EUR10.5 billion as part of the country‘s overall EUR26 billion stimulus plans. The market valued
        EUR23.7 billion in 2010 and is projected to reach EUR29.0 billion in 2015, after recording a CAGR of
        4.12% over the forecast period.

        The commercial construction market achieved a CAGR of 4.57% during the review period, to reach a
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