Leveraging infrastructure investments for faster recovery

THE infrastructure sector has been an unsung hero in this pandemic. Despite the complete disruption to how our economies operate, core infrastructure like power, water, communications and most transport systems has kept the economy operational. True to form, infrastructure has literally kept the lights (and the Internet!) on.

The global cost of Covid-19 is estimated at between US$5.8-8.8 trillion by the Asian Development Bank (ADB). Given the fiscal strain put on government finances by the economic stimulus packages and healthcare costs, the ability to drive infrastructure project investments stands diminished. Infrastructure has strong economic growth correlation and substantial multiplier effect. According to the Economic Policy Institute, US$100 spent on infrastructure boosts private sector output by a median of US$13 and an average of US$17 in the long run. Furthermore, each US$100 billion in infrastructure spending would boost job growth by about one million full-time equivalents. Hence, it is imperative to prioritise infrastructure project investments as economies prepare for a post-pandemic world.

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