At a time when more private investors are entering the infrastructure market, filling public funding shortfalls, Managing Director of Infrastructure Finance at Standard & Poor’s, Michael Wilkins, discusses infrastructure multipliers with Trade & Forfaiting Review in their July/August Awards issue. He explains that investment in infrastructure generates much more than the initial spend in terms of total economic output, but that there are certain degrees of this multiplication, with the strongest impact normally occurring when economies are at their weakest. He quotes China, India and Brazil as prime examples.
Closer to home, Wilkins believes that the European Commission’s recently adopted ‘Juncker Plan’ will encourage additional infrastructure spending in Europe of up to €315 billion over the next three years. While he acknowledges this as an ambitious target, he refers to certain initiatives, such as the European Investment Advisory Hub – a free service set up to advise on all matters related to infrastructure investment – which could help turn the theory into reality.
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