From roads and railways to energy grids and broadband, the world faces a US$64 trillion infrastructure challenge. That’s the headline from Aberdeen’s latest research.
It’s not just emerging markets that need to build. Developed economies are also grappling with ageing systems, climate resilience and rising power demands.
Paul and Bob unpack the economic forces driving this infrastructure surge, including urbanisation, electrification and the shift to renewables.
Paul also speaks to Sameer Amin, Head of Concession Infrastructure, about how Aberdeen is investing in real-world solutions – from hospitals and tunnels to green energy plants.
Some highlights:
Emerging markets lead the demand. Rapid population growth and urban migration mean countries must build more – and better – transport, energy and public utilities.
- Developed markets face repair bills. Years of underinvestment have left roads, airports and energy grids in poor shape. Climate-proofing is now a priority.
- Energy is the biggest gap. Electrification and AI-driven power needs mean global generation capacity must more than double by 2050. Renewables help but require more upfront investment.
- Can governments afford it? High debt and rising interest costs make public funding tough. But falling renewable costs and private sector partnerships offer hope.
- The cost of doing nothing. Infrastructure gaps drag on productivity and long-term growth. A World Bank study found that every US$1 spent on public infrastructure yields US$1.50 in economic output.
Listen to the latest episode of our Macro Bytes podcast for the full discussion.