Steady improvement and bright prospects for construction despite challenges
The Spanish economy continues to improve with the growth rate remaining above 3 percent. Inflation is low, and unemployment has fallen, but was still at 16.4 percent last year. There are uncertainties, however, generated by the political situation in Catalonia, which has led to the government lowering its economic expectations for 2018.
The construction market is slowly recovering from the Global Financial Crash. Business confidence has returned, and foreign investment is increasing. The commercial office sector grew by about 30 percent in 2017 and strong growth is expected in 2018. The residential sector is expected to grow 6 percent in 2018.
In March 2017, the government announced plans to spend USD4.8bn on transport infrastructure, housing and other infrastructure between 2017 and 2020. To support economic development and growth, the government is also investing USD1.5bn into the construction of a high-speed rail network, plus USD566m to modernize the existing high-speed railway tracks by 2020.
|Cost escalation 2017–18:||0.3%|
|Cost escalation 2018–19:||0.3%|
|Location factor (USD):||65.8|
The future of Spain looks bright but has some way to go. The Spain Treasury Funding Program 2018 strengthens the economy by investing in mid and long-term projects such as the high-speed rail network, which will help the construction sector.
This content is part of the International construction market survey 2018