Boston, MA -- (ReleaseWire) -- 04/21/2014 -- The Spanish construction industry recorded a compound annual growth rate (CAGR) of -14.48% during the review period (2008-2013). The country entered into recession in 2009, which hampered the level of construction activity during the review period. After a subsequent decline, the Spanish economy finally grew by 0.3% in the fourth quarter of 2013. The outlook of the construction industry is expected to be positive over the forecast period, with growth supported by the expansion of road and rail infrastructure, government schemes such as the Golden Visa to support the residential market, increased investor sentiment across Europe, and improved export demand. Timetric expects the Spanish construction industry to record a CAGR of 2.54% over the forecast-period (2013-2018).
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- According to the National Statistics Institute (Spanish: Instituto Nacional de Estadistica, INE), the construction of new buildings declined from 91,743 units in 2009 to 56,776 units in 2012. Although the economy came out of recession in the third quarter of 2013, the forecast-period outlook for construction in Spain remains moderate due to excess stock of unoccupied houses, low wages and high unemployment.
- In December 2013, the European Investment Bank (EIB) granted a loan of EUR465.0 million (US$597.9 million) to the Public Work Ministry to improve the nation's road networks. This loan will sponsor several road infrastructure works such as construction of bypasses, access road, upgrading and widening of national road.
- In 2008, Spain entered into recession due to the burst of the property bubble and the increase in unemployment in the country. The Spanish unemployment rate reached 26.3% in the third quarter of 2013. However, in December 2013, the number of people unemployed fell by 107,570 according to figures released by the Labor Ministry. However, although unemployment is declining, disposable incomes remain low, negatively affecting demand for housing.
- According to the European Automobile Manufacturer's Association (ACEA), new car registrations grew from 699,589 units in 2012 to 722,703 units in 2013, an increase of 3.3%. With positive developments in the automobile industry, major manufacturers such as Volkswagen and Renault are planning to increase their production capacities. Daimler plans to invest EUR190.0 million (US$260.0 million) to upgrade its van plant in Spain. Increased car sales and rising investment will boost demand for manufacturing plant construction over the forecast period.
Companies Mentioned in this Report: Actividades de Construccion y Servicios SA, Fomento de Construcciones y Contratas SA, Obrascon Huarte Lain SA, Acciona SA, Ferrovial SA
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