Construction will depend on Greek consumer confidence

Subject

Construction sector.

Significance

Before 2009, construction was a main driver of domestic economic growth. Subsequently, a sharp drop in residential building and a decline in public infrastructure spending reduced output to half the pre-crisis level.

Impacts

• The lower participation of those up to 25 years old post-crisis is likely to lead to future skill shortages.
• A drop in R&D investment and innovation will undermine construction firms’ future competitiveness.
• The improved investment climate under the new government should support net FDI into real estate, after record levels in 2018.