Global capital project & infrastructure to reach $9trn by 2025
New analysis of global capital project and infrastructure (CP&I) spending by PwC shows it is expected to grow to more than $9trn annually by 2025, up from $4trn in 2012.
The new report Capital project and infrastructure spending: Outlook to 2025 – analyses capital project & infrastructure spending across 49 of the world’s largest economies. These account for 90 per cent of global economic output, covering the extraction, utilities, manufacturing, transport and social infrastructure sectors.
The report, for which Oxford Economics provided research support, estimates the scale of current infrastructure investment and assesses the prospects for future investment from now to 2025. Following a rebound from the international financial crisis, the global CP&I market should grow by as much as 6-7 per cent annually between 2014- 2025, with the UK growing 3.8per cent pa over this period.
Overall, close to $78trn is expected to be spent globally between now and 2025 on capital projects and infrastructure, with $1.5trn forecast for the UK.
The UK’s overall spending will keep pace with other major European economies, with total spending reaching £106bn in 2025 with power and transport accounting for almost half of spending, versus around a third.
With the fiscal squeeze forecast to ease from 2020, investment growth of 4.5 per cent annually is possible, making up for slower growth during the austerity years (2.4 per cent 2014-19). Demographic shifts will also influence spending with 20 per cent of the UK population being over 65 by 2025