$97 trillion of infrastructure investment needed by 2040, report finds

Paterniano Del Favero
Luglio 27, 2017

Global Infrastructure Hub, in its report titled "Global Infrastructure Outlook", said that India will need investments to the tune of around United States dollars 4.5 trillion by 2040 to develop infrastructure, improve economic growth and community well being. And in order to meet the water and electricity goals, the investment need forecast increases by an additional $236 billion per year until 2030, when the goals are due to be met. The biggest gaps between current investments and those the country needs to do to be the top performer among its GDP peers are in the road ($79 billion), telecom ($167 billion) as well as electricity and water segments.

Rail will also play a prominent role within the Chinese infrastructure market as the country continues to develop a network of high-speed lines to link its major cities.

The research highlighted that USD18 trillion will be unfunded if current trends continue.

Heathcote believes the gap between current trends and investment need is not the largest in case of India compared with other countries, although the requirement for meeting SDGs is very large and hard.

GI Hub projects that the world population will increase by 25% to 2 billion, driving the need to spend more on creating and upgrading infrastructure.

Kenya's population is expected to increase by 35 million people by 2040 coupled with economic growth of 5.5 per cent, the study said.

Romania could also record a significant investment gap in the railway infrastructure sector.

The firm, which conducted an intensive study of 50 countries and seven industry sectors, found out that by 2040, the global population will grow by nearly two billion people a 25 pet cent increase.

"Outlook is a comprehensive and detailed analysis of infrastructure investment need".

In China, the proportion of investment going towards rail and road infrastructure could expand in the future, accounting for US$18 trillion of the total, while electricity may account for a slightly smaller share of investment than in the past, the report said. "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. Migration from rural to urban areas will grow by 46% triggering a massive need for infrastructure the report specified.

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