Ireland will have the fastest growing construction industry in Europe until the year 2000, according to Euroconstruct, which represents construction analysts in 15 European countries.

It says that in the five years to 2000, annual construction work in Ireland will have grown by 72 per cent compared with growth of 11 per cent over the same period in Britain. "What is happening in the Irish construction industry is primarily driven by the strength of the Irish economy," said Mr George Hennessy, head of economic affairs at the Construction Industry Federation (CIF). "There is more confidence about, more employment and that is clearly generating demand."

Increased demand for factories, offices and retail space, the growing numbers of people entering the housing market and the final phase of the current round of European Union structural funding were all driving the industry, he said.

The CIF is forecasting growth of 8 to 9 per cent in the Irish construction industry this year, slipping to 4 to 5 per cent next year.

But the biggest motor driving European construction, Germany, will remain in recession this year, for the third year in a row, according to Euroconstruct.

France and Italy are expected to see slight growth this year while construction output in Spain and Britain will expand by between 3 and 4 per cent.

With solid growth in Ireland, Finland, Portugal and Sweden looking guaranteed, Germany emerging from recession and moderate to good growth in most other nations, overall the scene is set for the European market to expand by about 4 per cent between now and 2000.

Healthy growth is expected in private non-housing construction and in the repair and maintenance sector. But civil engineering and public building work will remain under pressure as a result of the stringent measures governments have put in place preparing for monetary union.