A whopping $138 billion of infrastructure spending is planned across New Zealand over the next 10 years, according to the latest Infometrics Infrastructure Pipeline Profile – Click on this link for details: https://bit.ly/350fgTh

Infrastructure can be defined in a number of ways depending on the policy discussion; in general, however, the term refers to longer-lived, capital-intensive systems and facilities, such as roads, bridges, railways etc.

Infrastructure is understood to be a critical factor in the health and wealth of a country, enabling private businesses and individuals to produce goods and services more efficiently. Our transport and urban infrastructure is struggling to keep up with population growth, increased demand and changing needs, including transitioning to a low emissions economy. New Zealand’s regional infrastructure is often not at a standard required by communities – this infrastructure deficit is manifesting in unaffordable housing, congestion, poor quality drinking water and loss of productivity. So this investment is needed and can’t come soon enough.

With respect to overall economic output, increased infrastructure spending by the government is generally expected to result in higher economic output, in the short term by stimulating demand and in the long term by increasing overall productivity. The type of infrastructure is also expected to affect the impact on economic output. Investments in core infrastructure, defined as roads, railways, airports and utilities, are expected to produce larger gains in economic output than investments in some broader types of infrastructure, such as hospitals, schools and other public buildings.

Infrastructure investments are likely to positively impact employment as well. Recent research suggests modest reductions in the unemployment rate in response to increased infrastructure investment.

John Kenel
Assured Property