Logging modest GDP growth of 0.1%, in adjusted terms, in the third quarter of 2014 was arguably more than many expected for the German economy, considering the 0.2% contraction it suffered the previous quarter.

Despite protestations from the country itself, the Organization for Economic Cooperation and Development claims that Germany, and the Eurozone as a whole, is in need of a package that comprises monetary stimulus and a softening of fi scal discipline in a bid to stave off the threat of "persistent economic stagnation", according to Nasdaq. Modest growth

It claims that the Paris-based organisation has singled out the Eurozone as something of a "black spot" in the global economy, which is marked by both modest growth and also unemployment above precrisis levels. Add to this, the risks that fi nancial volatility and weakening confi dence will catalyse and even gloomier turn of events.

"Germany accounts for nearly 30% of the single currency bloc’s GDP. With other large euro members such as France and Italy struggling with stagnation or recession, the region is even more dependent on its largest economy for growth. Eurozone GDP expanded just 0.6% in annualized terms from July to September, or 0.2% from the second quarter, the European Union’s statistics agency said earlier this month," it explains.

According to The Economist, which points to predictions that the economy will not grow until the middle of next year, places the spotlight on German exports. In simple terms, it claims that the country’s currentaccount balance, and as one of the world’s largest, at 7% of GDP, this means Germany is susceptible when the global economy takes a Open economy

It adds that as an open economy, with the ratio of exports to GDP double China’s, a decline in exports by 6%, as they did in August, you know it is bad news. In recent months the global economy has turned against Germany.

"About 6% of German exports go to China, especially what economists call "capital" goods such as heavy machinery. China’s economy is slowing: in 2010 GDP growth was 10% but this year it will be more like 7%," explains The Economist. In addition, with China rebalancing away from investment towards consumption, Germany has also suffered owing to slow growth in the 17 other euro-zone countries. Turning our attention to Germany’s construction industry, it’s total value add was EUR115.8 billion (US$153.5 billion) in 2013, which was representative of a review-period (to 2018) CAGR of 4.51%, according to information solutions and technologies specialists Timetric. The value add is anticipated to reach EUR139.9 billion (US$197.1 billion) in 2018, and record a forecast-period CAGR of 3.87%, driven by increases in residential and infrastructure construction activities.

It explains: "Factors such as low interest rates, a relatively strong economic performance compared with other European countries, and rising employment rates will increase the demand for construction. "According to Destatis (Federal Statistics Office), the total number of dwelling permits increased from 124,876 in the first-half of 2013 to 136,843 in the first-half of 2014, whereas building construction permits increased from 102,157 to 103,088 during the same period. Therefore, the outlook for construction industry is assessed as moderate over the forecast period."

Industrial construction

Looking back at 2013, industrial construction formed the smallest market in the German construction industry in 2013, accounting for 9.2% of the total industry value. According to Timetric, it posted a review-period CAGR of 5.04%, to value EUR24.0 billion, the equivalent of US$31.9 billion, in 2013.

Timetric explains: "Growth in manufacturing, and chemicals and pharmaceuticals is expected to cataylse further growth in this field growing forward. Destatis figures outline that the seasonally and calendar-adjusted average production index grew by 2.4%, from 105.4 during the first-half of 2013 to 107.9 in the first-half of 2014. As a result, the market is expected to record a forecast-period CAGR of 3.31%, to value EUR28.3 billion (US$39.9 billion) in 2018."

Manufacturing plants proved to be the largest category within the industrial construction market in last year, accounting for 26.7% of the total market value while the category recorded a review-period CAGR of 4.81% and valued EUR6.4 billion (US$8.5 billion) in 2013. According to Timetric, chemicals and pharmaceuticals plants formed the second-largest category, recording a 22.9% share of the industrial construction market last year. This element of the industrial construction field recorded a review-period CAGR of 4.97% and valued EUR5.5 billion (US$7.3 billion) in 2013.

Chemical construction

Analysts expect growth in this area to be driven by investments in the chemical industry and, as a result, it is expected to post a CAGR of 3.52% over the forecast period, valuing EUR6.5 billion (US$9.2 billion) in 2018.

Again, looking back at 2013, domestic investment from chemical companies increased 2.0%, reaching EUR6.4 billion (US$8.5 billion), compared with 2012, with 42.0% of the amount allocated for capacity expansion.