The positive economic conditions in our market segments will, in all likelihood, also continue in 2008. Negative effects could potentially be brought on by a further increase in the cost of raw materials or as a result of the global consequences of a recession in the US economy.
The pace of growth will slow in the United States while economies in Australia, the Middle East and Asia will continue to expand dynamically. In Europe, the basis for an ongoing positive economic development exists, whereby some new member states of the European Union will again acieve above-average growth rates.
In those markets that are relevant for our Group we expect generally good economic conditions. In Germany, demand for construction will increase again in 2008, it remains to be seen, however, whether or not the rate of increase will match the level of the previous year. In most neighboring European countries a continued robust construction business can be expected. Australia is showing persistently strong demand for civil engineering work while in the construction business it is primarily commercial construction that will grow further. In the future, Canada will continue to invest in the expansion of its roads and highways. The same applies to pertroleum exporting countries, where, as in the past, significant funds will be invested to improve infrastructure.
In the services business we continue to benefit from an increase in facility investments. The industries that are most important to us, the energy and chemical industries, are among the fastest growing sectors in Europe. As a result of strong global demand for raw materials and a healthy domestic economy, industry in Australia will continue to show solid growth rates. The increasing activities of international investors in the German real-estate market is driving the transfer of services to external partners.
Bilfinger Berger, the Multi Service Group for real estate, industrial plants and infrastructure, is well-positioned for profitable growth in its target markets. We want to further strengthen our strategic advantages primarily through the expansion of our services business. We have the financial lattitude necessary for acquisitions.We are also counting on organic growth which, in view of the high rates of growth in 2007 and the degree to which our capacities are currently being utilized, will flatten out slightly. Furthermore, we want to invest in high-yield privately financed concession projects in the future, too. In the construction business we are striving to achieve a sustainable increase in profitability.