G20’s Global Infrastructure Hub (GI Hub) has released a new report examining global infrastructure. The Global Infrastructure Outlook, looks at the costs of providing infrastructure and the investment needs both globally and individually for 50 countries and seven sectors. In order to support global economic growth and close infrastructure gaps, the report estimates some US$94Tr by 2040,
Global infrastructure investment needs to reach $97Tr by 2040 with a further $3.5Tr needed to meet the UN Sustainable Development Goals (SDGs) for universal household access to drinking water and electricity by 2030.
The report, also reveals that some 19% of the investment will be unfunded if current spending trends continue.
It is predicted that some $3.7Tr will need to be invested in infrastructure every year to meet the demands of an accelerating global population. To put this into context this is the equivalent of the total annual GDP of Germany, the world’s fourth largest economy.
To meet the UN SDGs, the investment increases by an additional $236Bn per year until 2030.
Both emerging and advanced countries will be challenged by the growing needs, for example the report shows the US will have the largest gap in infrastructure spending, while China will have the greatest demand.
The UK is looking better equipped and is expected to meet 92% of its infrastructure investment needs between now and 2040, with a population growth of some 14%. The urban population in the UK will continue to increase and infrastructure needs will focus on supporting people on the move, through upgrades to airports and the rail network. However, the UK rail sector is forecast to have the largest gap between spending based on current trends and investment need, with an expected $135Bn extra needed to accommodate increased capacity and improved travel times.
“Outlook is a comprehensive and detailed analysis of infrastructure investment need. It gives the new country and sector spending data that governments and funding organisations have been calling for,” says Global Infrastructure Hub CEO Chris Heathcote.
“Outlook tells us three key things, how much each country needs to spend on infrastructure to 2040, where that need is for each infrastructure sector, and what their gap is, based on their current spending trends.
“Most significantly it advises governments and the private sector on where the greatest needs are, and how much should be spent to provide infrastructure for communities in the future.
Source – UK Construction Online