With the German economy continuing its growth trend, these are good times for the country’s many cement producers. Housebuilding dominates demand as the population rises and construction investment remains strong. There are signs of consolidation among some producers, while others invest to satisfy improving consumption levels.
Unlike some of its European counterparts, Germany’s economy has been firing on all cylinders of late. 2016 saw GDP growth of 1.9 per cent, compared to 1.5 per cent in the previous year. The second quarter of 2017 saw further expansion of 0.9 per cent as improving trade and falling unemployment continued to bolster the economy. The country’s unemployment rate is now at its lowest level in 27 years, as employment reached a record 44.2m in the 2Q17. Private consumption has become a key driver of growth, advancing by 0.8 per cent in the April-June period this year. According to the European Commission, Germany’s GDP growth is forecast to dip slightly this year to 1.6 per cent, while the unemployment rate will remain around 3.9 per cent.
