Global Infrastructure Outlook | Report | GPE – July 27, 2017:
Developing and emerging economies will drive future economic growth, growing at more than twice the rate of advanced economies.
By 2040, global GDP is predicted to almost double from 2015 levels. Global Infrastructure Outlook (Outlook) forecasts that developing and emerging markets will grow at 3.6 per cent a year on average, compared with 1.7 per cent a year for advanced economies.
Fast Population Growth Is Concentrated In Cities:
By 2040, the global population will increase by almost two billion people, an increase of 25%. However that growth will not be evenly spread. Outlook forecasts that as rural to urban migration gathers pace, the urban population will increase by 46%. The global population density will rise from 49 people per square kilometre to 61, driving a renewed focus on long-term planning to reduce congestion and strain on existing networks.
$97 Trillion Of Infrastructure Investment Needed By 2040:
Outlook projects that global infrastructure investment needs to reach $94 trillion by 2040 to keep pace with profound economic and demographic changes, and to close infrastructure gaps.
It also forecasts a global infrastructure investment gap of about $15 trillion – equal to a 16% infrastructure investment deficit – by 2040. Closing the gap will require annual infrastructure investment to increase from the current level of 3.0% of global GDP to 3.5%
Meeting the SDGs increases the need by a further $3.5 trillion, growing the gap to about $18 trillion and investment requirement to 3.7% of global GDP.
Beyond these headline global figures are the country and sector specific infrastructure requirements that represent the real challenge of finding, and funding, infrastructure programs that enhance economic and social wellbeing. By forecasting current trends in infrastructure investment and investment need at a country and sector level, Outlook identifies where significant investment gaps are most likely to occur.
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