Global reinsurer Swiss Re projected spending on infrastructure in emerging markets (EMs) at $43 trillion in the 2021-40 period compared to $23 trillion in advanced economies. It anticipated infrastructure expenditures to reach $35 trillion in Emerging Asia, or 4.2% of the region's GDP, and to account for 81.4% of total EM spending on infrastructure in the covered period. It also expected spending on infrastructure in Africa and Latin America at $3 trillion each in the 2021-40 period, which would constitute 4.3% and 2.3% of each region's GDP, respectively. Further, it projected infrastructure expenditures in Emerging Europe to reach $2 trillion, equivalent to 3% of the region's GDP in the covered period. It expected China to be the largest spender on infrastructure in the next 20 years, and to account for 54% of aggregate spending on infrastructure in EMs. It also forecast India to be the second largest investor in infrastructure among EMs in the covered period, representing 8% of EM infrastructure spending. It indicated that infrastructure spending in Africa in the 2021-40 period will be driven by Nigeria, Egypt and Ethiopia. On a sectoral basis, it anticipated the energy sector to attract 34% of infrastructure investments in EMs in the next 20 years, while it expected spending on roads to account for 33% of the total. It added that about 33% of investments in energy will be in renewable sources, mainly in wind energy and solar photovoltaic.
Source: Swiss Re