General economic conditions

According to the OECD's Economic Outlook, global economic growth is projected to reach 3.2 % in 2025, matching the previous year's level. The International Monetary Fund (IMF) anticipates a similar trend for 2025, with gross domestic product (GDP) projected to rise by 3.3 % (2024: +3.3 %). The tariff measures announced by the U.S. President in the spring of 2025 and the resulting trade conflicts have been mitigated by the conclusion of various trade agreements over the course of the year. Despite concerns about a more severe economic slowdown, the global economy demonstrated resilience last year, largely due to accelerated production and trade activities, as well as substantial investments in artificial intelligence. Furthermore, global fiscal and monetary policies supported economic development. Global inflation remained stable, and annual consumer price inflation in the G20 countries fell significantly from 6.3 % in 2024 to 3.4 % in 2025. According to the European Commission, the European Union (EU) achieved a GDP growth of 1.4 % in 2025, with the Eurozone recording a growth of 1.3 %. Consequently, economic performance continued to improve in both the EU and the Eurozone.

Market	Economic growth in 2025	Key factors

Core markets
Germany	+0.2 %	Germany's export-oriented economy, particularly the mechanical engineering, automotive, and chemical industries, experienced challenges due to weaker foreign markets and trade uncertainties resulting from tariffs and protectionist measures. Exports to the U.S. (-9.0 %) and China (-10.7 %) experienced significant declines in the first 11 months of 2025 compared to the same period the previous year, while business with the EU (+4.0 %) provided a stabilizing effect. A profound structural transformation, shaped by decarbonization, digitalization, demographic shifts, and geopolitical upheavals, has presented the German economy with challenges. High energy costs, relatively high labor costs, and bureaucratic and infrastructural hurdles hindered investment, production processes in general, and startup processes in particular. Domestic demand was bolstered by rising real incomes and augmented government spending on infrastructure and defense. Consumer price inflation has stabilized, with an average annual inflation rate of 2.2 % in 2025.
Netherlands	+ 1.7 %	The Dutch economy demonstrated consistent growth across all four quarters of 2025, with positive growth recorded in Q1 (+0.4 %), Q2 (+0.2 %), Q3 (+0.5 %), and Q4 (+0.5 %). Major Dutch technology companies, including ASML, have reported record profits, driven by robust demand for AI technology. The 2.6 % increase in exports was a major contributing factor to this growth. Public consumption (+2.6 %) and private consumption (+1.4 %) also demonstrated positive growth. The surge in private consumption was driven by nominal wage growth of over 6.0 % in 2024 and 5.2 % in 2025. Investment activity saw a 0.5 % uptick compared to 2024 figures. The unemployment rate stood at a mere 4.0 % at the close of the year.
Switzerland	+1.4 %	Inflation, which has averaged +0.2 % annually since 2020 and is projected to reach its lowest level in 2025, combined with positive nominal wage growth, has boosted households' real incomes. Private consumption demonstrated stability, contributing significantly to overall growth with a 1.4 % increase. Investment in equipment decreased by 0.6 % in 2025. High uncertainty in the international environment, weak profitability, and persistently low capacity utilization dampened the investment appetite of many Swiss companies. Export growth decreased to 1.3 % in 2025, down from 4.3 % in the previous year. The labor market continued to weaken over the course of the year, with the unemployment rate standing at 4.8 % in 2025 (2024: 4.3 %).
Growth markets
Great Britain	+1.4 %	In 2025, business investment experienced a 4.1 % increase. High inflation (annual inflation rate of 3.4 % in December 2025) and high interest rates (Bank of England base rate at 3.75 %) had a negative impact on consumer spending and corporate financing. A weak labor market, with an unemployment rate above 5.1 %, also had a negative impact on income and consumption growth.
USA	+2.1 %	The U.S. economy demonstrated notable growth in the second (+3.8 %) and third quarters (+4.4 %) following a weak first quarter of 2025 (-0.3 %), which was attributable to orders being brought forward and the resulting increase in imports ahead of announced tariff hikes. Investments in AI and digital infrastructure, in particular, contributed to this growth. Moderate inflation (+2.7 %) enabled the U.S. Federal Reserve to cut key interest rates in three steps in September, October, and December 2025, thereby supporting economic growth. The interest rate range fell from 4.25–4.50 % at the beginning of 2025 to 3.50–3.75 % by the end of the year. Significant productivity gains (+4.9 %) have been achieved despite a challenging labor market, marked by an average annual unemployment rate of 4.4 %.
France	+0.8 %	In 2025, the government budget deficit stood at 5.5 % of GDP. This figure represents a marked improvement over the 5.8 % recorded in 2024, a feat achieved through strategic fiscal adjustments and a reduction in public spending. This has hindered investment and, as a result, economic growth. Private consumption, accounting for over 50 % of GDP, is a pivotal driver of France's economy, with a modest 0.4 % increase in 2025. According to the head of the French central bank, unstable government majorities and budget disputes have had a negative impact on business and consumer sentiment in 2025.
* Economic growth according to IMF, World Economic Outlook Update, January 2026; European Commission, Economic forecast for Netherlands, 17 November 2025 and State Secretariat for Economic Affairs SECO, Economic Forecasts, 15 December 2025

According to the findings outlined in the 100th EUROCONSTRUCT Summary Report, construction activity across the 19 EUROCONSTRUCT nations experienced a 0.3 % uptick in 2025, subsequent to a 1.7 % decrease in output the previous year. The building sector continues to face significant challenges, including modest economic growth, high interest rates, inflation, and rising construction costs.

Market	Development of the construction industry in 2025	Key factors

Core markets
Germany	-1.4 %	As in previous years, new residential construction saw a sharp decline (-6.4 %). Due to challenging financing conditions and uncertain income prospects, many households decided against undertaking major construction projects. Due to the slowdown in new construction activity, the share of residential renovations increased to 78 % in 2025. The substantial need for maintenance and modernization—driven by an aging housing stock or energy efficiency considerations—requires significant investment. However, this has been hampered by rising construction costs and declining purchasing power. Nonresidential construction had a stabilizing effect. After significant declines in previous years, real construction volume fell by only 0.7 % in 2025. Civil engineering experienced a period of growth and expansion. Real construction volume rose by 2.6 %, driven by infrastructure projects in the transportation, energy, and digitalization sectors.
Netherlands	+0.9 %	The recovery in building permits and housing starts, which began in 2024, resulted in a 4.9 % increase in new residential construction in 2025 (2024: -5.2 %). This increase was moderated by smaller living spaces with lower investment costs, rising construction and financing costs, and stringent sustainability requirements. After a 0.4 % decrease in 2024, renovation and maintenance spending increased slightly in 2025, by 0.6 %. In 2025, the industry experienced a significant downturn, with a 13.0 % decline in new non-residential construction. The market's recent fluctuations can be attributed, in large part, to the demand for industrial and warehouse properties. The civil engineering sector demonstrated notable growth in 2025, with a 4.5 % increase, primarily driven by a 5.5 % surge in new investments and a 3.5 % rise in renovations.
Switzerland	+0.2 %	According to the KOF Institute, construction investment will remain at a low level for the time being in 2025 due to the ongoing downturn in the residential construction sector and the cyclical slump in investment in industrial and commercial construction. According to the KOF Institute, construction prices are projected to rise by 0.8 % in 2025. Price competition in the Swiss construction market remains intense. Prices for construction materials have been trending slightly downward since late summer of last year. After a 1.2 % decline in 2024, real investment in housing construction registered a slight 0.5 % decrease in 2025. Investment in non-residential buildings accounts for one-third of the total construction volume in Switzerland. In 2025, this figure decreased by 0.7 %.
Growth markets
Great Britain	+1.9%	The construction of new residential properties recovered more slowly than expected in 2025 and therefore increased by only 2.1 %. Residential building renovations saw a 0.2 % decrease in 2025, following a period of outperformance compared to new construction activity in recent years. Private residential renovations decreased by a modest 0.8 %, driven by rising construction costs and a decline in homeowners' funds, while renovations of public housing rose by 2.5 %. Non-residential construction grew in line with the overall market, at 1.9 %, with growth distributed almost evenly between new construction (+1.9 %) and renovations (+2.0 %). Following high growth rates in previous years, the construction volume for renovations now stands at nearly €42.6 billion, which corresponds to approximately 40 % of construction activity in non-residential construction. The commercial sector is exerting a notable drag on overall momentum due to inflationary pressures, sluggish political decision-making processes, and investor caution.
USA	-1.0 %	In 2025, total U.S. spending on engineering and construction decreased after a 6.0 % rise in 2024. Tariffs imposed on imports from the U.S.'s global trading partners led to price increases for key construction materials, which reduced the viability of projects for companies and prompted them to reconsider strategic investments. The total number of housing starts in the U.S. rose by 1.1 % in 2025, with residential construction declining by 8.8 % and nonresidential construction increasing by 7.5 %. Commercial megaprojects, such as data centers and transportation hubs, are driving growth in the nonresidential sector. The U.S. construction industry continues to face challenges due to a persistent shortage of skilled labor.
France	-1.4%	While the downward trend in new residential construction has slowed over the past two years, a decline of 5.7 % was still recorded in 2025. Political instability, permitting issues, the net-zero land-use policy, and persistently high and rising construction costs have led to a climate of caution among households and developers. Building permits and housing starts increased, indicating a potential turnaround. New construction in the non-residential sector experienced a 5.3 % decline due to the weak performance of recent years. While renovations contributed to a 0.9 % increase, they were not sufficient to fully offset the overall decline. The civil engineering market has shown consistent growth, with an annual growth rate of 2.1 % since 2025. Key sectors include rail transport, investments in telecommunications and renewable energy infrastructure, as well as data centers.
* Development of the construction industry according to 100th EUROCONSTRUCT Summary Report, Winter 2025, p. 40 and 2026 North American Engineering and Construction Industry Overview, First Quarter Edition, p. 37