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the firstr un on an Englishb ank sinceV ictoriant imes,t he fifth rise in interestr atess ince August2 006,t he slowdowni n house priceg roMh and generalu ncertaintya boutt he economic climate. However,e conomicg rowthi s anticipatedto pick up from 2009 onwards,a lthought his view may changed ependingo n eventsi n 2008. The short-termp rospectsf or the constructions ectora re relativelyb uoyant.O lympicrelatedc onstructionw orks are projectedt o cost upwardso f t3.08 billionw ith a further t1.67 billiont o be spent on infrastructurea nd regenerationI.n January2 008,w ork is due to start on the Greenway project. In the Summer of 2008, work is expected to start on the Olympic stadium groundworks and the Aquatics Centre. The Games are expected to act as a catalystf or what is billedb y the governmenta s "the most ambitiousr egeneration programme in recent memory". The programme will include the development of five new permanent sports venues and a number of temporary venues, a one million sq ft media centre,4 ,000 homesw hichw ill be convertedf rom the Olympicv illagea nd a further5 ,000 which will be providede lsewherei n the redevelopmentF. urthermoreo, ne of the largest shoppingc entresi n Europei s projectedt o be built,i nvolvinga n estimatedf 7 billiono f private sector investment. Page 32 Forecast Construction Output in Great Britain, 2008-2012 (€ Mif lion at2007 Prices) 116.197 121,885 128.014 lfi,6sz 138,041 +3o/o *so/u +So/u +4oh +4oh Source: MBD forecasts Table Highlights: MBD has revisedd ownwardsi ts forecastf or constructiono utput in 2008 due to the expecteds lowdowni n economicg roMh in the year. Nonethelesst,h e levelo f constructiona ctivityi s anticipatedto demonstratey ear-on-yearg rowthb etween2 008 and 2012,w ith annualg rowth rateso scillatingb etween3 o/oa nd 5% in realt erms By 2012, output is expected to reach t138.04 billion (at 2007 prices), equivalent to a real-term increaseo f 22o/oc omparedw ith 2007. The developmento f the marketi s expectedt o be stronglyi nfluencedb y the deliveryo f governmentin vestmenta nd the abilityo f local authoritiesto avoidt he deferralo f essentialr epaira nd maintenancew ork. Duringt he forecastp eriodt he constructionin dustryi s expectedt o benefitf rom continued groMh in bothp ublica nd privateh ousingo utput,w hereg overnmentta rgetsf or the provisiono f housingc ombinedw ith a continueds upplys hortagea re expectedt o buoy outputi n the shortt o mediumt erm. Outputr elatingt o contractsa ssociatedw ith key projectss uch as the OlympicG ames in 2012 are also expectedt o contributet o output growthd uringt he forecastp eriod.H owever,t he industryw ill have to deal with weakening private sector demand and rising energy and raw material costs. |