Financing New Zealand’s infrastructure to improve its ability to withstand future challenges will require NZ$1 trillion (55 trillion rubles) over the next 30 years, ASB Bank said in a report, NZA reported on May 9.
In its latest infrastructure report, the ASB highlights that a large number of experts believe that innovation in the construction and maintenance of infrastructure is necessary to improve New Zealand’s long-term economic performance.
ASB senior economist Mark Smith said the country had underinvested in its core infrastructure in recent years. According to him, this has led to an infrastructure deficit costing around 200 billion New Zealand dollars (11 trillion rubles).
“Infrastructure is vital to our way of life and future economic growth, but our investment in it has historically been around 6% of GDP, well below the OECD average. “It is no coincidence that New Zealand’s productivity and income levels are also well below OECD standards.””Smith clarified.
He added that while expanding infrastructure was necessary, the obstacle was that it was risky and expensive, as New Zealand lacked funds, expertise and resources.
With the country’s population expected to increase by approximately 2 million people in 30 years, between 175,000 and 700,000 homes and associated infrastructure will be needed. In this case, it is necessary to take into account the possibility of natural disasters occurring in an earthquake-prone region.
Source: Rossa Primavera
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