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Government decision makers are
grappling with the challenges of
how to get more infrastructure
built faster, and rightfully so.
As Citi speaks to its government clients around the world,
one of the most frequently raised issues is infrastructure
finance. Government decision makers are grappling with the
challenges of how to get more infrastructure built faster,
and rightfully so. Infrastructure investments are germane to
broader economic growth, and yet the gap between what
the world spends on infrastructure and global economic
infrastructure requirements is massive.
The world invests approximately $3 trillion per year in infrastructure, roughly 3.5% of global
GDP. According to McKinsey, the global annual investment required just to maintain current
infrastructure stock-levels is approximately $3.7 trillion, or 4.1% of global GDP. So, in effect,
the world is not even maintaining its current infrastructure stock, let alone providing for the
tremendous new needs of the global economy. Infrastructure needs in the OECD alone is north
of $50 trillion, a gargantuan number. So, the multi-trillion dollar question is how much should the
Jay Collins
Vice Chairman,
Corporate and
Investment Banking,
Citi
Closing the Infrastructure
Spending Gap