Global Infrastructure Outlook 2013

April 17, 2013

As part of our Outlook 2013, we are highlighting several themes that are impacting the U.S. and global economy: Global Infrastructure; The U.S. Energy Renaissance; and Feed The World. These themes have major investment implications and should play a key role in future market returns. In this piece, we are focusing on global infrastructure.

Infrastructure plays a critical role in society. Infrastructures promote prosperity and growth and contribute to quality of life, including the social well being, health and safety of citizens, and the quality of the environment. Infrastructure investment is not a luxury but a necessity for economic growth, productivity, competitiveness, social development and the elimination of poverty.

Through to 2030, annual infrastructure investment requirements for electricity, road and rail transport, telecommunications and water are likely to average around 3.5% of world gross domestic product (GDP).

A large share of investments will be undertaken in the developing world, where countries such as China, India and Brazil willbespending billions of dollars on infrastructures to underpin their growing economies and satisfy the increasing aspirations oftheir populations. However, despite their significantly lower economic growth rates over the next few decades, developed countries toowill be required to invest heavily to maintain, upgrade or replace existing (and often aging) infrastructures, and to preserve their international competitiveness.

We hope you find this report useful and informative for your investment needs.

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