Canada and the US have the most attractive infrastructure investment climates, according to Timetric’s Infrastructure Risk Index

13 Oct 2016

Timetric’s Infrastructure Risk Index (IRI) provides a global view of the current infrastructure investment climate. The Index covers 60 countries, with 30 advanced and 30 developing economies included. All countries are given a score out of 100 based on their political, financial, economic and market environments, with a lower score representing a more positive outlook.

The average overall score is 53.3 for a developing economy and 35.1 for an advanced economy. While on average developed and advanced economies have similar scores in their economic and infrastructure market environments, the advanced economies are superior in providing the right political and financial institutions to facilitate investment and construction of infrastructure.

The top three ranked countries, Australia, the US and Canada represent an overall environment of low risk and high investment opportunity. Other countries in the top 10 are generally those that have well developed financial and political environments, but drop slightly in the number of infrastructure opportunities available, or the country’s willingness to invest in infrastructure at the present time.  In contrast, Middle Eastern countries Qatar (18), the UAE (16) and Saudi Arabia (27) all have well performing infrastructure markets and abundant opportunities for investment, but recent economic trends following the oil downtown or undeveloped political and financial institutions keep them out of the top 10 ranked countries.

All major regions of the world are covered in the IRI, with the highest performing regions those with a large share of developed countries. Asia-Pacific is kept out of the top spot by the high performing political environments of the Western European countries, driven primarily by Scandinavia. The Americas middling regional result stems from the fact that the top two performers, the US and Canada are brought down by Latin America, which contains Venezuela and Argentina, two of the worst performing countries.

Source: Company Press Release