PR98245

Tumbling investment in middle-and low-income countries, global stagnation, and an abundance of dry powder: The state of private investment in infrastructure

SYDNEY, Oct. 13, 2022 /PRNewswire=KYODO JBN/ --

-A divide: In 2021, 80% of private investment in infrastructure projects

occurred in high-income countries.

-Resilient performance: Rising inflation and interest rates affected

infrastructure less than other asset classes.

-Green lining: In 2021 60% of private investment in infrastructure projects was

green.

Private investment in infrastructure projects is tumbling in middle-and

low-income countries where investment is needed most, according to a new report

now published by the Global Infrastructure Hub (https://bit.ly/3RMFu3F) (GI

Hub). While investment grew by 8.3% in high-income countries in 2021, it fell

for a third year in middle- and low-income countries, by 8.8%.

At the same time, the Infrastructure Monitor 2022 report

(https://bit.ly/3rNEUbi) shows overall private investment in infrastructure

projects is stagnant for the eighth year running, despite recovering to

pre-pandemic levels. As we saw from the COVID-19 pandemic, lack of investment

in sufficient, resilient infrastructure leaves people everywhere vulnerable –

to inadequate health care, increased unemployment, poverty, and other

devastating effects.

The flatlining private investment is particularly notable alongside rising

levels of dry powder and the strong performance of infrastructure investments.

"Dry powder - that is, available but uninvested private capital - has

quadrupled since 2010, to USD298 billion," said GI Hub Chief Executive Officer

Marie Lam-Frendo. "It is unacceptable that we aren't investing in badly needed

infrastructure when we have the capital, and we know investments in

infrastructure exhibit strong performance compared with investments in other

asset classes."

The report finds a 'green lining' in unprecedented levels of green private

investment, largely in the renewable energy sector. However, green investment

outside renewables remains low and needs to grow to meet climate goals.

"We cannot afford to ignore either the infrastructure investment crisis or the

climate crisis. Through public and private sector collaboration, we can work

towards solving both," said Lam-Frendo. "The immediate and absolute priority

for the infrastructure community is to join forces and activate a massive surge

in investment."

Infrastructure Monitor 2022 provides governments and investors with data

insights to target their investments for maximum impact. This is the third

edition of the GI Hub's flagship report and covers trends in:

-Private investment in infrastructure projects

-Infrastructure investment performance

-Availability of private capital for infrastructure

-The role of multilateral development banks in private investment in

infrastructure.

Source: Global Infrastructure Hub

Image Attachments Links:

   Link: http://asianetnews.net/view-attachment?attach-id=431366

   Link: http://asianetnews.net/view-attachment?attach-id=431367

   Caption: Global Infrastructure Hub Chief Executive Officer Marie Lam-Frendo