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Infrastructure, where we start

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Almost everyone relies on infrastructure in one way or another. Whether it is taking the train to work, having clean drinking water, turning on the lights or wearing clothes made overseas. Infrastructure touches our lives on a daily basis.

But providing and maintaining infrastructure can be expensive. Government budgets in many areas of the world are severely constrained and spending on major projects can be, and has often been, postponed.

Research undertaken by the McKinsey Global Institute suggests that around USD57tn of global infrastructure investment is required between 2016 and 2030. This equates to spending of around USD.8tn per year, but even while many countries are investing heavily in their infrastructure, many are not. This is expected to result in an annual shortfall in spending of around USD350bn per year. This base case scenario does not factor in the desire to achieve United Nations Sustainable Development targets, which, when included, increases the shortfall in spending to around USD1tn each year. Add in the potential impacts of climate change and the gap gets wider still.

Source : AXA Real Estate

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