Global infrastructure, capital spending to hit $9 trillion by 2025 - PwC study

WASHINGTON Mon Jun 23, 2014 10:07am IST

Workers spray chemical into a river to prevent the spread of algae, in front of residential buildings under construction, in Taiyuan, Shanxi province June 18, 2014. REUTERS/Jon Woo

Workers spray chemical into a river to prevent the spread of algae, in front of residential buildings under construction, in Taiyuan, Shanxi province June 18, 2014.

Credit: Reuters/Jon Woo

Related Topics

WASHINGTON (Reuters) - Global spending on capital projects and infrastructure will shift from West to East, and jump to more than $9 trillion a year by 2025, according to a forecast released on Monday by accounting firm PricewaterhouseCoopers.

The growth will be driven by China, which overtook the United States as the top spender on capital and infrastructure in 2009, Pricewaterhouse said. Globally, this investment spending stood at just $4 trillion in 2012.

"Emerging markets, especially China and other countries in Asia, without the burden of recovering from a financial crisis, will see much faster growth in infrastructure spending," Richard Abadie, global capital projects and infrastructure leader at Pricewaterhouse, said in a prepared statement.

About $78 trillion is expected to be spent on capital projects and infrastructure globally between now and 2025, according to the study.

Availability of funding and government finances, demographic factors, urbanization and natural resource endowments will all drive future infrastructure spending, Pricewaterhouse said.

In the United States, capital projects and infrastructure spending is expected to reach $1 trillion annually by 2025, growing an average of 3.5 percent a year, according to the firm.

U.S. infrastructure spending will face constraints from relatively tight government finances, but capital spending elsewhere will get a lift from the nation's shale oil boom and investment in telecommunications, it said.

(Reporting by Moriah Costa; Editing by Lisa Shumaker)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

Climate Change

Climate Change

Climate change to cut South Asia's growth 9 percent by 2100 - ADB.  Full Article 

Ballmer Exits

Ballmer Exits

Ex-CEO Ballmer quits Microsoft board to focus on NBA's Clippers  Full Article 

Brent Prices

Brent Prices

Brent holds near 14-month low on plentiful supply.  Full Article 

A Man's World

A Man's World

Despite lip service, Silicon Valley venture capital still a man’s world.  Full Article 

Needless Spending

Needless Spending

Exclusive - Icahn says Family Dollar wasting over $300 mln in breakup fees .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage