Rethinking Infrastructure Financing for Southeast Asia in the Post-Pandemic Era
In 2020, global GDP fell by 3.3%, the labor market fell by 114 million jobs, and international investment fell by 42% to about $859 billion.
Asian Development Bank (ADB) estimates, about 27%–30% of global losses are in developing countries in Asia, where the fall in regional GDP amounted to $1.4–2.2 trillion.
As the authors of the publication Rethinking Infrastructure Financing for Southeast Asia in the Post-Pandemic Era note, infrastructure investments are a driver of economic recovery and sustainable development. According to the Global Infrastructure Hub analysis, the short-term fiscal multiplier for infrastructure investment is 0.8 over 1 year and 1.53 over 2-5 years.
ADB experts analyzed the impact of the COVID-19 pandemic on the investment attractiveness of regional infrastructure projects. To increase the investment attractiveness of projects, experts recommend taking additional measures to reduce financial risks and a more detailed study of the feasibility study.