EUROPE- FROM RECOVERY TO PROSPERITY
“ what defines us is how well we rise up after falling”
The European economy is in its recovery phase, the crisis hit economy has implemented radical changes that has helped it come back in the game. Several economies have successfully recovered their pre crisis GDP growth. Winds of skepticism revolving around are likely to fade as conditions are becoming right for investments. The economy is currently growing at the rate of 1.8% is likely to grow by 1.95% by 2018. Increase in Capital spending and Investments along with easy access to credits will be factors contributing to growth prospects. World’s largest Single-Market has a significant potential to rebound its competitiveness and emerge as a rising economy.
Market trends are still sluggish for some sectors but Europe offers great opportunities for growth in sectors such as Construction, Retail, Energy and Power, Automobile and Telecommunication. These sectors have contributed largely to the growth,and therefore EU commission, World Bank and other funding agencies have been keen on funding many of these sector projects to further increase is potential.
Construction industry is one of the most dynamic industrial sectors of the European economy and one of the largest employers. It represents 9.9% of GDP and 51.4% of total capital investment; nearly 7% of the European population is engaged in construction sector. Major economies contributing to this sector are Germany, UK, France, Spain and Poland. As per latest research report they drive around 3% of growth in the market, which is estimated to be 40 billion Euros of contribution. Among the sub sectors, Residential Construction sector occupies the influential part of the market with massive investment coming from Western Europe, and renovation accounting for 60% 0f the market share. Optimism also prevails in Non-residential and Civil Engineering sectors, the outputs are expected to increase by 4.2% by 2017, and have projected to achieve double-digit growth by 2018. Growth has also returned to the Equipment Industry, increasing demand from manufacturing industry and upcoming construction projects are the factors driving growth in the equipment industry. In terms of products, Earth Moving Equipment’s and Road Equipment’s account for 40% of total market share compared to heavy and concrete equipment.
Retail in Europe is all set to come in mainstream, accounting for 11% of GDP share. In 2015 the total sales through digital commerce was 477 billion Euros and expected to reach 540 billion Euros by 2016-17. With economic conditions, driving market for retail expansion
E-commerce has increased the potential markets for retailers and scope of products available for consumer.
Automotive industry of Europe accounts for attracting largest FDI, automobiles account for 4% of total share in GDP. With Germany, UK, France, Spain and Italy accounting largest market share. New opportunities that technology driven functionalities in cars provide new business potential, the market size is estimated to be over 31 billion Euros and is expected to grow by 115,6 billion Euros by 2020. Segments providing services on technology front will primarily drive growth. Opportunities are also in abundance in Central and Eastern Europe, with most modern productive plants.
Energy and Power Sector
Investment in power sector also has grown rapidly over the period. There has been significant investment in decentralized generation such as Solar Photo Voltaic and Biomass combined Heat and Power. Massive investments are required in conventional and renewable, centralized and decentralized generations and in modernization of transmission grid.
Telecommunication sector of Europe has also shown remarkable growth over 5 years and is continuing to grow at breakneck speed. Digital ecosystem are now seeking new points with increase in demand for data services like never before. Telecommunication sector stands at nearly 67 billion$,a significant increase after crisis. Massive investment in broadband infrastructure has placed Europe at the mainstream,these services are in demand like never before. At the same time, easing of regulations, and Merger and Acquisition activities gaining momentum have opened up many investment opportunities for global investors.
From recovery to prosperity, Europe has a long way to go; the economy has issued some serious policy changes that will surely help to face the challenges of an increasingly developing world. Increase investment from foreign as well as domestic entities highlights renewed confidence in recovery. Opportunities for growth are increasing in sectors like Construction, IT, Energy and Power sectors and information technologies.
Europe being one of largest single-market, opportunities are generated through government Tenders and public sector tenders which are floated on various Multi-Media platforms by the government for the investors to tap the opportunities.
For more information on government tenders, europe tenders click on the below link