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Infrastructure Spending - 7/6/16

Many Americans fret about a real and/or perceived lack of infrastructure investment, which translates into modest broadband speeds, crumbling roads, and precarious bridges.  It turns out that America is not alone. 

According to a new report from the McKinsey Global Institute, the world needs to increase its investment in infrastructure by about zero point four percent of global output between now and twenty thirty to meet increasing commercial demands. 

As indicated by writer David Harrison, that translates into an additional three hundred and fifty billion dollars in annual spending.  The report focuses upon transportation, power, water, and telecommunications infrastructure.  Globally, nations spend an average of three point five percent of gross domestic product on infrastructure. 

In America, its less than that.  In twenty fourteen, America spent three point two percent of gross domestic product on public infrastructure, down from four point two percent five years earlier.  The Eurozone spends less than three percent of national output on infrastructure.  China spends nearly nine percent of its GDP on infrastructure; India about five percent.  

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.