Overall, basic conditions in 2007 in Germany were very favourable, with the German economy showing robust growth. However, the continuing favourable investment climate had only a small effect on the building sector, where residential construction continued its downward trend, although there was some growth in non-residential building. The surge in prices for energy and raw materials led to a substantial increase in production costs, and the shortage of cullet created higher energy consumption, as melting of recycled glass needs less energy than that of raw materials. Expanding at a rate of 11.9%, the German glass industry posted its strongest economic growth since reunification with turnover at Euros 8.55BN in 2007. The need for glass is expected to triple to the year 2012.
