Infrastructure investment to be a key driver of growth in emerging markets post COVID-19 crisis

• Emerging markets will invest an estimated 3.9% of GDP (USD 2.2 trillion annually) in infrastructure over next 20 years
• There will be strong growth in investment in renewable energy, smart and resilient infrastructure
• Emerging Asia will invest an estimated USD 1.7 trillion annually, equal to 4.2% of GDP; China to account for 54% of emerging market spend
• Infrastructure in emerging markets represents an annual USD 920 billion investment opportunity for institutional investors, including insurers
• Infrastructure-related insurance premiums to exceed USD 50 billion over 10 years, mostly from engineering, property and energy

Investment in infrastructure development is set to be one of the main drivers of sustainable growth in the emerging markets after the COVID-19 crisis subsides, the latest sigma says. Emerging markets will invest USD 2.2 trillion in infrastructure annually over the next 20 years, equal to 3.9% of gross domestic product (GDP), according to estimates in the report. The energy sector, in particular renewable energy, smart and resilient infrastructure, and healthcare facilities are expected to attract strong investment. The sigma estimates that emerging market infrastructure represents an annual investment opportunity of USD 920 billion for long-term investors, including insurers. The construction and operational phases of infrastructure projects will also generate new demand for insurance solutions, with engineering, property and energy lines of business set to benefit most.

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