$100 trillion needed for global infrastructure

Global Infrastructure Outlook, which covers 50 countries and seven sectors to 2040, reveals the cost of providing infrastructure is forecast to reach $94tn in 13 years time, with a further $3.5 trillion 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 $18tn – almost 20% – of the $97tn, will be unfunded if current spending trends continue.

Every year $3.7tn will need to be invested in infrastructure to meet the demands of an accelerating global population, the equivalent of the total annual GDP of Germany, the world’s fourth largest economy.

And in order to meet the water and electricity SDGs, the investment need forecast increases by an additional $236bn per year until 2030, when the goals are due to be met.

This is not just a major challenge for emerging countries that need to create new infrastructure, but also for advanced countries that have ageing systems that have to be replaced, the report says.

The US will have the largest gap in infrastructure spending, at $3.8tn, while China will have the greatest demand, at $28 trillion, representing a massive 30% of global infrastructure investment needs.

The ultimate achievement of the SDGs by 2030 is reliant on the provision of quality infrastructure. On current trends, investment will fall substantially short of meeting SDGs for water and electricity. Read more…