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Infrastructure Projects Key To Global Economic Growth And Recovery

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January 10, 2011 - Infrastructure and construction projects for the public good could help bolster economic growth, bringing the U.S. and the world out of the current recession, and creating a more sustainable future path.

In a cutting-edge report to be released in New York this month, CG/LA Infrastructure, the leading infrastructure project development experts, is calling on governments from the United States, Latin America, Europe and Asia to support key infrastructure projects that would create jobs, and jumpstart the construction and engineering industries as well as other sectors of the global economy.  

The report, “The Global Infrastructure Marketplace: The Next 20 Years,” also estimates that global investment for infrastructure projects will total US$24 trillion over the next 20 years, rising to greater than US$1 trillion a year by 2030. However, as the world increasingly urbanizes, global demand for infrastructure will be US$60 to US70 trillion.

 

The report highlights the role that infrastructure projects such as roads, bridges, mass transit and ports must play in global economic recovery. It details infrastructure demand and spending in 66 countries over the past 20 years and presents projections of what the supply and demand will be in these countries by 2030.  

Key findings include:  

Brazil, India, Indonesia and Turkey are set to become infrastructure “Hot Spots” in the next few years, delivering a sustained pipeline of high quality projects, making up between 20% and 25% of global demand during this period.  

• Investment varies widely across sectors. It is expected that investment in electricity and transportation will account for 65% of investments in infrastructure while water distribution and wastewater treatment will continue to underperform receiving only 9% of total investments.  

China is the largest infrastructure market in the world, making up nearly 40% of global infrastructure demand. This figure will decline to just over 30% by 2030 as that country’s population ages and the initial investment is completed.  

• Small emerging markets are falling further behind. Countries like Guatemala, Thailand and Kenya will continue to fall behind because they do not have the public sector capacity to develop and support a robust pipeline of projects.

 

• Investment in infrastructure projects in the U.S. will continue to decline as a percentage of the global total. Currently, investments in U.S. projects make up 15% of the global infrastructure market. By 2030, it is predicted that this will drop to 12%.

“Here’s the bottom line – for the United States to get out of this recession, and for the world to get out of this recession, we need the Obama Administration to invest in infrastructure projects that would spur the economy and create jobs for the American people,” said CG/LA Infrastructure President and CEO Norman F. Anderson.  

“This is also true across the globe – there is an incredible and continuing demand for the development of high-quality infrastructure projects around the world, from the largest nations to smaller, emerging countries. An investment in an infrastructure project is an investment in the growth and sustainability of not only individual countries, but the global economy,” he added.  

The report’s projections were developed by focusing on historic infrastructure spending by 66 countries, examining 37 variables, including GDP projections and measures of public sector capacity to derive the most likely infrastructure investment scenarios through 2030.  

CG/LA will release the report as part of a panel discussion on the future and growth of infrastructure projects at its 4th Annual Global Infrastructure Leadership Forum in New York City from January 19-21. The panel will include Terry Newendrop, Chairman and CEO at Taylor-DeJong; Huw Thomas, Partner at Foster + Partners; Lixing Zou, Vice President at the China Development Bank; and Wagner Bittencourt, Director for Infrastructure of Brazil’s National Development Bank (BNDES).

 
   

Global Strategic Infrastructure Leadership Forum now in its fourth year, the Global Forum annually identifies the Top 100 global infrastructure projects (total value of those projects this year is US$550 billion), hosting them projects at the annual industry forum – bringing together professionals interested in global infrastructure, including individuals in engineering, construction, technology, public policy and finance.  

CG/LA Infrastructure is the world leader in infrastructure project assessment particularly those projects that generate increased country competitiveness and individual opportunity. We are launching a new global infrastructure database in 2011.

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