Hard and soft infrastructure are the backbone of the global economy. They

• enable efficient trade,
• create and connect people to job opportunities
• and open access to new markets.

Infrastructure spending is an important tool for economic stimulus and growth, as well as a key lever for poverty alleviation and social inclusion. For instance, a 1-percent increase in physical infrastructure assets, is estimated to boost GDP growth by as much as 1-2 percent – and additionally contributes to growth in other sectors. This is much higher than other forms of public spending.

If infrastructure is planned, constructed and managed in a sustainable manner there is additional potential in economic growth and social as well as economic inclusion. Furthermore, sustainable infrastructure is deliberately build to withstand natural disasters and other shocks making sustainable infrastructure projects especially feasible in face of climate change and political uncertanties.

Energy infrastructure – Enabler of economic and social growth:

A reliable and low-cost energy and electricity infrastructure is a pre-condition for investments, innovations, and new industries that foster inclusion, growth, and the generation of new jobs.

The access of businesses to energy, especially electricity, increases their productivity and profitability, enables them to have longer opening hours, enhances security and creates the opportunity to open businesses in rural areas. That makes electrification a core driver in the reduction of regional disparities and inclusive development.

Renewable energy plays role of utmost importance in realizing the full potential of energy infrastructure for economic benefits: each $1 million invested in renewable energy creates around seven new full-time jobs – five more than the same investment in fossil fuels.

Renewable energy infrastructure is not only a key driver of social and economic development but also essential for achieving a climate-neutral future. Consequently, accelerating its expansion is imperative.

Transport infrastructure – Driver of economic activity and equal access to services:

Accessible transport infrastructure is a fundamental component to increase connectivity in and between regions. But safe and reliable transport infrastructure not only connects people to essential services such as healthcare or education and to new job opportunities, it also increases women’s access to the labour market. Furthermore, transport infrastructure enables the exchange of goods and services between countries, contributing to economic growth through enhanced opportunities for trading on a regional and supraregional level. 

On the flipside, sustainable transport infrastructure faces various risks that need to be considered in project planning, with high enviromental and climate change-related risks being among the most significant.

Digital Infrastructure – Bridging Economic Opportunities and Social Inclusion: 

Digital infrastructure is a condition to enable the transition to an information society in an integrated digital economy. Increased digital infrastructure development has created new opportunities for countries to accelerate economic growth, connect citizens to jobs and services as well as increase local value creation. Increased broadband penetration, for example, can increase GDP by strengthening connections between goods, people, markets and jobs. In case of natural disasters and other shocks digital infrastructure can also enhances community resilience by providing access to information, services and employment opportunities when local physical infrastructure may be inoperable. Building on these benefits, Digital Public Infrastructure can further support sustainable development by enabling data-driven approaches that promote environmental sustainability while fostering inclusive socio-economic development.