(MENAFN Press) France possesses the second-largest economy on 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.
The country recorded 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 over EUR25 billion stimulus package announced by the government in 2008, which primarily focused on investments.
In addition, the government announced considerable tax breaks and credits for investments made in 2009.
Slow construction industry growth after economic crisis
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 is the largest French 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. 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 growth supported by government economic stimulus plans
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 as part of the country's overall EUR26 billion stimulus plans. The market is projected to record a CAGR of 4.12% over the forecast period.
Rising demand for commercial buildings in France
The commercial construction market achieved a CAGR of 4.57% during the review period. The market is projected to increase in value at a CAGR of 3.09% over the forecast period, to reach EUR18.2 in 2015. This will be generated from the rising demand for office buildings and other commercial construction buildings.
Institutional construction market was severely affected by the global economic crisis
The institutional construction market accounted for a share of 10.1% of the French construction industry value in 2010. The institutional construction market was the most adversely affected market by the global economic crisis in the country, and recorded a CAGR of -0.68% during the review period. The market is expected to maintain a slow growth rate, and to achieve a CAGR of 2.87% over the forecast period.
The industrial construction market recorded the fastest growth during the review period
Industrial construction is the smallest market in the French construction industry. The market accounted for a share of 6.7% of the construction industry value in 2010. Out of the French construction markets, industrial construction recorded the highest CAGR of 5.58% during the review period. The market is projected to increase in value at a CAGR of 3.31% over the forecast period.