The European Union (27 countries) will continue to experience minimal construction related growth, a couple of countries such as France, Poland, Norway and The Netherlands are starting to see increased opportunities, but for the most part the rest of Europe will see slow growth in the rest of 2025 as the economic consequences from the war in Ukraine grinds on.

The value of the Euro has been progressively declining against the US dollar for the best part of 3 years, some economists are projecting that the Euro could fall to between 0.85 and 0.90 to the US dollar in the next 12 months. This (of course) will impact inflation in Europe and could be the catalyst to increased construction related material costs.

The UK construction sector is facing major headwinds, with a major cutback possible in the next 3 to 6 months, construction starts are forecast to be down 10% to 15% & possibly more from this time a year ago. Construction activity in the greater London area seems to be holding its own, but still down by 5% to 7.5% from 12 months back.  New & revamp / upgrade of offices & housing units are what is keeping the construction sector alive.

Germany’s construction market is estimated to be $270 to $285 billion in 2024 and is expected grow to be in the range of $295 to $310 billion by end of 2025.

The German Government has supported a historic $500 billion budget to be expended on new military & infrastructure projects, most probably in response to the Trump Administration view on Europe.

Germany continues to be the major economy in the EU. Economic activity in Germany is expected to decline by 1.5% to 3.5% in 2025, which will be bad for the construction sector.

Latest feedback from France is that the Construction Industry should see a small uptick in construction activity in the remainder of 2025. France’s leadership in safe & sustained nuclear energy / engineering & construction knowledge plays a crucial role in Europe’s calling for clean energy & zero carbon emissions.