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32 I Central Europe bne September 2017
CEE/CIS economic hubs face $1.3 trillion infrastructure gap
Clare Nuttall in Bucharest
The four regional economic hubs in the CEE/CIS region – Rus- sia, Kazakhstan, Turkey and Poland – are facing a combined infra- structure gap of $1.307 trillion over the next 23 years, according to new research published by the Global Infrastructure Hub, a G20 initiative.
The global need for infrastructure investment will reach $94 trillion
by 2040, with a further $3.5 trillion needed to meet the United Nations’ Sustainable Development Goals for electricity and water, finds the study carried out by Oxford Economics.
It compares an infrastructure invest- ment forecast to 2040 based on invest- ment trends to date with projected infrastructure needs of 50 countries worldwide. This reveals that the overall
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global infrastructure investment needs will be $94 trillion, or 19%, higher than expected investment between 2016 and 2040, representing an aver- age gap of $3.7 trillion per year.
Within the “node” countries of the CEE/CIS region – the four largest economies that have become trad-
years is dwarfed by the $1.8 trillion needed, leaving a gap of $727bn.
Previously a World Bank report warned that Russia’s infrastructure investment needs are “staggering”. According to the World Bank, public expenditure on infrastructure amounted to less than 1.0% of GDP per year in 2012-2014,
“The overall global infrastructure investment needs will be $94 trillion”
ing centres and magnets for invest- ment for their respective sub regions – the steepest gap is in Russia. The anticipated $1.1 trillion worth of investment in Russia over the next 23
compared to investment needs of around $1 trillion or 75% of Russia’s 2015
GDP. “Depreciation of capital stock, particularly in transport, energy, public utilities, and social infrastructure, is the