London- G20-backed Global Infrastructure Hub said on Tuesday that the world needs $94 trillion for infrastructure investments by 2040.
Nearly a fifth of the needed investment risks being unfunded if current spending trends continue.
To close the spending gap, annual infrastructure spending needs to rise to 3.5 % from 3 % of global gross domestic product, the GIH said in a report.
The report details how much each country needs to spend on infrastructure to 2040, which sectors need it the most and how far they are from meeting these needs based on current spending trends.
GIH Chief Executive Chris Heathcote said: “We believe this information will be key to governments, and indeed those organizations that fund, plan and build infrastructure projects into the future – and providing sustainable cities with social and economic benefits for all.”
The GIH, set up by the G20 in 2014, aims to help increase opportunities for public and private investment in infrastructure around the world.
It is funded by governments including Britain, Australia, China, Korea and Singapore.
Every year, $3.7 trillion needs to be invested in infrastructure to meet demand, equivalent to the annual economic output of Germany, the world’s fourth largest economy.