Germany's Construction Sector Expects Infrastructure Fund to Fuel Turnaround After Three Years of Decline
Massive infrastructure fund promises to revive Germany's struggling construction industry.
Germany
DE's construction sector is emerging from a prolonged crisis, with the country's main trade body forecasting a return to growth after three consecutive years of decline. The Central Association of the German Construction Industry (ZDB) predicts a 0.6% real increase in sector turnover for 2025, followed by a more robust 2.5% surge in 2026, driven primarily by a massive government infrastructure modernization package.
DE's construction sector is emerging from a prolonged crisis, with the country's main trade body forecasting a return to growth after three consecutive years of decline. The Central Association of the German Construction Industry (ZDB) predicts a 0.6% real increase in sector turnover for 2025, followed by a more robust 2.5% surge in 2026, driven primarily by a massive government infrastructure modernization package.The turnaround comes as the government channels hundreds of billions of euros into infrastructure renewal. Revenues are forecast to reach 168 billion euros ($196.61 billion) in 2025, up 3% in nominal terms from the previous year, climbing further to 178 billion euros in 2026. This marks a significant reversal for an industry that has struggled with declining demand and economic headwinds.
