The World Bank has reaffirmed that infrastructure investment remains a major driver of job creation, economic growth, and resilience, even in the face of global financial challenges.

In a new blog released over the weekend, the Bank noted that despite rising interest rates and inflationary pressures that have complicated financing conditions, infrastructure continues to stand out as a preferred investment class.

According to the report, infrastructure projects provide stable revenues, lower risks, and more predictable returns compared to many other private investment opportunities, making them attractive to both governments and investors.

The findings are drawn from the World Bank’s Infrastructure Monitor 2024, which provides fresh data on how global trends are shaping private investment in infrastructure.

Key highlights include:

In 2023, global private investment in infrastructure projects (greenfield, brownfield, and privatizations) rose above the five-year pre-pandemic average.

However, emerging markets lagged behind, widening the gap between developed and developing economies.

Rising infrastructure delivery costs have made it harder for low-income regions to catch up.

Secondary market activity, such as acquisitions and refinancing, fell by 17% in 2023, mainly due to the effect of higher interest rates.

Total capital raised by infrastructure funds also dropped by nearly half compared to the previous year.

The World Bank emphasized the need to scale up solutions that work, such as targeted public support, sound regulation, blended finance, and guarantees, to close the global infrastructure gap.

“While investment has continued to grow in nominal terms, the current pace is far from what is needed to bridge the gap, especially in emerging markets,” the report stated.

The Bank stressed that infrastructure not only fuels long-term development opportunities but also plays a crucial role in creating jobs, particularly in regions struggling with unemployment.