The Potential of Privately Funded Infrastructure

The Potential of Privately Funded Infrastructure

Investors could be drawn to infrastructure to the tune of 0.2 percentage points in economic growth.

According to a new report from the McKinsey Global Institute, an infrastructure program that relies on private financing could boost the U.S. economy by up to 0.2 percentage point. The report says investors have $120 trillion in which they are looking for reliable returns.

President-elect Donald Trump’s infrastructure proposal relies on attracting more private investment. The report listed a number of growth opportunities for private investment, with digitization and global trade leading the pack.

“Private finance of infrastructure has huge benefits in the sense of promoting efficiency, in the sense of promoting innovation,” said Jan Mischke, a senior fellow at McKinsey.

The report also argued that an improved trade policy would help smaller companies export aboard, as well as support laid-off workers and help local governments attract foreign investment.