Construction activities over the next few years In line with other economic activity, construction activity declined slightly last year, although this was estimated to be a temporary phenomenon. Large resources have been allocated for infrastructure measures and for the development of the third generation of mobile telephony, which is estimated to lead to increased activity in future. There are numerous indications that residential construction will continue to increase, albeit from a low starting level. The continuing positive development of households’ disposable incomes should lead to an increase in new building and renovation of housing. Subsidies for building rental apartment blocks, support for student accommodation and ecological construction are also expected to stimulate investment in housing. Seen in a slightly longer term perspective, the low rate of new building is insufficient to meet the demand. A shift in the age structure will probably lead to an increase in housing investment as a percentage of GDP. However, even here prices and wages comprise a problem for the industry. The preliminary results show that construction workers received wage increases in excess of 5 per cent last year, while productivity only amounted to 1.4 per cent and unemployment among construction workers was almost 10 per cent. Unemployment in the construction industry varies geographically, however, with a rate of under 3 per cent in Stockholm and over 19 per cent in, for instance, the Gävleborg and Norrbotten regions. Relative productivity in the construction sector appears to be declining. The gap between the percentage employed and the percentage of GDP is increasing.
Shortly after we joined the EU it was almost a shared view among the prevailing part of the elite in our country that the sooner we join the better and that the euro was the best club imaginable and a sure-fire recipe for success. The public never accepted this view. However, it was still very difficult to argue against it, like I and some others did ten years ago. The lesson learned is: no worries, the media and politicians can change their minds. If you believe in your case, do not change yours. They will change theirs. Ladies and gentlemen, I very much believe in reasonable European cooperation. But I also believe in reasonable competition among countries and their economic models. So I do not take it lightly when some integration projects divide us rather than unite us. I think that next time around we should be much more careful when some start selling us a project as indisputable and irrefutable. At that moment we should all be far more circumspect and far less credulous. Thank you for your attention. 3/3  BIS central bankers' speeches