The case for growth markets infrastructure

We firmly believe that the global investment landscape is being shaped by three mega-trends: decarbonisation, digitalisation and deglobalisation. These trends are generating what we think are strong opportunities to invest in critical, essential service sustainable infrastructure. 

We believe there is a fourth ‘D’: demographics. Since the 1960s, global population growth has been on the decline. The 1960s saw the planet’s population grow at 2% per annum and now we are adding less than 1% each year to the global population. This will likely continue to decline. In contrast to these ageing populations in the West, over 90% of the population growth through 2045 will come from non-OECD countries. 

We are seeing emerging “big middle” income economies experience a dynamism driven by increasing wealth, industrialisation and urbanisation. Households buying their first appliances, mobiles or video game consoles, and companies connecting to the cloud through new towers and fibre networks – this is all creating demand similar to what the US experienced half a century ago. Southeast Asia for example, has seen electricity demand grow by four to five times since 2000, while demand in the US has been relatively flat. 

Not only do we see these creating a circa US$9 trillion annual infrastructure investment opportunity, but we think this opportunity is particularly relevant and compelling in today’s economic and geopolitical outlook. We’re living through a period of disruption affecting many markets and policy areas, from trade to defence. In this context, countries are likely to reassess their reliance on old global systems, which could see policymakers re-focus political attention to domestic matters such as infrastructure, including energy security and data protection.

Read the full ‘Thought Leadership’ article at the link below

Supporting documents

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