Official: Global infrastructure investment to continue expansion

17:06, May 12, 2010      

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Various types of infrastructure investment will continue to expand in the post-crisis era thanks to the high demand for infrastructure as a result of the recovery of the world economy, the economic development and accelerated urbanization in emerging countries, and the accelerated industrial adjustment and infrastructure upgrade in developed countries, said Chen Jian, deputy minister of the Ministry of Commerce (MOFCOM) on May 11.

Chen said during the "International Infrastructure Investment and Construction Forum" that infrastructure is significant for the economic development of a country and a key precondition for economic growth.

Infrastructure investment and construction as well as services provided by infrastructure can promote economic growth, directly and indirectly. Large infrastructure projects can directly increase the production and consumption of many industries such as energy, raw materials, financing, insurance and public utility, and accordingly create more job opportunities and increase fiscal revenues and personal income. Sound infrastructure can help enterprises lower production cost, enhance production efficiency and improve investment and consumption environment, which in turn will attract more external capital investments, advance the upgrading and updating of local industries, and achieve sustainable economic development.

Chen believes that the comprehensive benefits brought about by infrastructure investments and construction are far higher than the benefits of only infrastructure investment itself. After the international financial crisis, infrastructure investments and construction became an effective measure taken by countries around the world in achieving economic recovery and growth.

The world economy is undergoing profound development and changes during the post-crisis era, characterized by a trend of globalization, regionalization, group management, informatization and integration. Against such a backdrop, the size and speed for the flow of people, goods, funds and information across the world are continuously expanding, posing higher requirements for the carrying capacity of infrastructure.

By People's Daily Online


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