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August 11, 2016

Report: Rail and road infrastructure projects to support the growth of the construction industry in France

The French construction industry is expected to recover after a weak phase aided by investments in rail and road infrastructure projects, says a Timetric report.

The French construction industry is expected to recover after a weak phase aided by investments in rail and road infrastructure projects, says a Timetric report.

Titled ‘Construction in France – Key Trends and Opportunities to 2020’, the report forecasts that the output value of the construction market will increase at a compound annual growth rate (CAGR) of  1.49% from 2016 to 2020 in real terms. The industry’s turnaround will also be supported by a boost in investor and consumer confidence and growing focus on renewable energy projects. The inflow of foreign investments is also expected to increase.

"The government has initiated the addition of 2,000km of track to its high-speed railway network by 2020."

As a means of expanding connectivity among different regions, the government has initiated the addition of 2,000km of track to its high-speed railway network by 2020. The initiative is expected to attract substantial investment over the years.

The Grand Paris Express project is also an attempt by the authorities to improve connectivity in the country’s suburban districts. The project is designed to cover 205km of the transport network comprising the extension of two lines of the Paris Metro and the construction of four new automated lines. The €25bn ($27.8bn) multi-phased project was launched in 2015 and is projected to benefit approximately two million passengers a day.

Multiple steps have been taken by the French government to increase the pace of investment in the country, according to the Timetric report. These steps include tax stimulus for foreign start-ups, improved labour laws, and withdrawal of corporate social solidarity taxes. All these initiatives are expected to support the growth of the construction industry, which has suffered as a result of weak economy, poor business environment and low investments in the past.

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