Euroconstruct: Construction in Europe to shrink 2.1 pct in 2012

European construction network Euroconstruct on July 25 lowered its forecast for construction growth in 19 European nations due to "great uncertainty."

The network forecast the sector would shrink by about 2.1 percent year on year in 2012, reported Xinhua.

The primary cause for the faster-than-expected shrink was a "slump in the civil engineering sector of 4.2 percent," and it is closely linked to the eurozone debt crisis, the weakening economy, and austerity measures.

Austria is expected to fare slightly better than some of the other nations studied in Euroconstruct's report, with its construction sector expected to grow 0.4 percent in 2012, down from 2.6 percent in the previous year.

Countries with the worst outlook are Ireland, Portugal and Spain, where the construction sector is still in deep recession.

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