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4.2.        Socio-economic trends affecting water consumption in Europe

4.2.1.        Economic growth

Economic development drives the water demand from industry and services and associated electricity production, although not in a linear manner. The potential Gross Domestic Product (GDP) is projected to increase by 1.3 % per year in the period 2016-2070 in EU27+UK (EC, 2018c). This growth will not be reflected linearly in water demand because of increasing water use efficiency and decoupling (Figures 4.11, 4.13 and 4.16) and a shift towards renewable energy sources. Furthermore, there is an EU-wide trend of an increasing share of the GDP covered by the services sector (EC, 2015c), a sector which is less water-demanding than others.