Despite a crying need for better infrastructure, investment in it has actually fallen in 10 major economies since the financial crisis, including the US, according to a new study by the McKinsey Global Institute. Meanwhile,is still going gangbusters on roads, bridges, sewers, and everything else that makes a country run.
“China spends more on economic infrastructure annually than North America and Westerncombined,” according to the report published Wednesday.
Economists around the world have been arguing that now is a great time to invest in infrastructure because interest rates are super-low and thecould use the spending jolt. “Is anyone proud of Kennedy airport?” Harvard University economist likes to ask.
The MGI report cites 10 countries where infrastructure spending fell as a share of gross domestic product from 2008 to 2013: the US, UK, Italy, Australia, South Korea, Brazil, India, Russia, Mexico, and Saudi Arabia. The study counts 11 economies, but that’s because it lists the European Union as a separate entity..