After assessing the impact of immigration on the European Union, this week’s post concentrates on another current issue: the oil price decline and its consequences on the construction sector.
This global income redistribution from oil exporters to importers is an opportunity for the construction market: they can ride the falling Saudi bull as cheaper fuel prices, lower costs and stimulated EU economies may generate more demand.
The International Energy Agency is forecasting a lasting low price environment; therefore both short and medium term effects are worth studying. The direct effect of lower fuel prices is a boost both for companies in the construction sector and for most European economies. However, missing petrodollars in the world economy and Russia’s dependence on oil revenues hold an important risk for the future.
Our current post is the next in line dealing with migration that has an impact on construction. Such issues will be discussed at the 80th EUROCONSTRUCT Conference.
In our previous post we concluded that lower potential economic growth and an increasing immigration are likely in Europe in the long run. An overall lower economic growth puts pressure on the construction industry as well, however, increasing immigration provides new opportunities for growth. In this post we will first elaborate on possible short-term effects and then we will present our expectation for the long-term. Continue reading The housing market’s James Bond: increasing immigration
There is a series of current issues having an impact on construction that will be discussed at the 80th EUROCONSTRUCT Conference and first, we would like to address a very current issue in Europe: migration. There are many aspects of this phenomenon and it would be hard to present them all. Instead, we will address only one: how immigration can help slowing the ageing of the European Union’s population and thus increase growth prospects. Continue reading Europe at crossroads: Economic decline and the possibilities of increased immigration