Boston, MA -- (ReleaseWire) -- 04/17/2014 -- The value of the Italian construction industry declined during 2007-2013; the size of the industry, in real value-add terms, in 2013 was just 73% of the level recorded in 2007. The industry's total output registered a compound annual growth rate (CAGR) of -1.55% in nominal terms during the review period (2009-2013). Weak economic conditions across the eurozone, high unemployment, low wage growth and public spending cuts contributed to this decline. The construction industry is expected to fare slightly better over the forecast period (2014-2018), as a result of an anticipated economic recovery in Europe, the Italian government's focus on infrastructure construction, increased investor sentiments and improved export demand. The industry is expected to record a forecast-period CAGR of 0.76%.
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- Italy's construction industry has been in decline since 2008, with output value in real terms in 2013 being equivalent to around 76% of that recorded in 2007. In real value-add terms, the industry contracted by 5.9% in 2013, following an average annual decline of 5.4% in the preceding four years. High unemployment rates, low wage growth and public spending cuts have contributed to this downturn, particularly in the institutional, residential and commercial construction markets. Declining property prices have also reduced household wealth.
- The forecast-period outlook for construction in Italy is expected to fare slightly better, due to improving consumer and investor confidence, and positive developments in regional and global economic conditions. The Italian government is promoting the development of its construction industry to support economic growth, maintain employment levels and help improve living conditions.
- Despite austerity measures, the government is investing in infrastructure projects due to the nation's hosting of the 2015 World Expo. The government has announced various infrastructure projects, such as the Leonardo da Vinci-Fiumicino Airport terminal expansion project, the Bari-Taranto High-Speed Railway Line Duplication project and the Autostrada Val di Sambro Tunnel project to improve bridges, ports, roads, highways, airports, railways and power supplies, which will ultimately lead to the all-round development and modernization of the country's infrastructure.
- In 2013, the Italian government allocated EUR2 billion (US$2.7 billion) to the expansion and improvement of regional highways, and the maintenance of the country's rail network and other infrastructure developments. The amount will be spent over 2013-2017. The need for enhanced transport facilities across the country will lead to improvements in the country's infrastructure construction over the forecast period.
Companies Mentioned in this Report: Saipem SpA, Atlantia SpA, Astaldi SpA, Maire Tecnimont SpA, Salini Impregilo SpA
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