Western European Construction Industry takes First Steps on the Road to Recovery in 1998

The construction industry in Western Europe has yet to harvest the fruits of general economic recovery. Following a decline in the volume of construction output (–0.6 percent) in 1996, the industry achieved a slight growth rate of 0.4 percent in 1997. In some countries (Switzerland, Germany, Sweden, and France), the slump continued throughout the past year. For 1998, the 15 Western European Euroconstruct countries envisage a growth rate of 1.7 percent, even though the recession will persist in Germany. At this level, the rate remains substantially below the general economic revival. In Austria, the construction industry foresees a growth rate of 1.5 percent in 1998, less than its counterparts in Western Europe. In the CEE countries, on the other hand, building activities are expected to be dynamic: Višegrad members anticipate a growth rate of 5.4 percent in 1998.