A new, far larger estimate of infrastructure spending in New Core
Wednesday, July 2, 2008 at 3:20AM ECONOMICS FOCUS: "Building BRICs of growth: Record spending on infrastructure will help to sustain rapid growth in emerging economies," The Economist, 7 June 2008, p. 88.
This one stuns: Morgan Stanley says $22 trillion (today's prices) in infrastructure development in the next ten years! I've been going around saying $10T in water and energy by 2030 (may still be true) and that gets jaws a'dropping. This estimate concerns (according to the charts) air travel infrastructure, electricity, telephone and roads.
Of the $22 trillion, China accounts for 9.3, India 2.8, Russia 2.2, Brazil 1.1, the Middle East 0.9, other Asia 2.4 and "other" at 3.1 for a total of $21.7 trillion.
Goldman Sachs report just out says infrastructure development is a result of growth, not a driver. Chicken or egg to me.
That's just a load o' money, no matter how you count it.
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