Growth Resurgence across Europe leads the way for an Improved Infrastructure Investment Climate

28 Jun 2017

Europe headlines a positive quarter for all major regions around the globe based on the Q2 2017 update of Timetric’s Infrastructure Risk Index (IRI). Construction output picked up for many European countries, with Sweden, Norway and Finland in particular seeing high construction growth of over 8% on the year to Q1 2017. The unweighted average IRI scores for Western and Eastern Europe currently sit at 35.9 and 51.1, a drop of 1.3 and 1.5 points respectively from Q1 (IRI Scores are out of 100 based on the political, financial, economic and market environments, with a lower score representing a more positive outlook).

 

Positive movement was not restricted only to Europe, with risks in infrastructure investment declining globally, and the unweighted global average IRI score dropping 0.9 points to 44.7, from 45.6 in Q1 2017. Africa’s IRI score dropped by one point over the quarter, owing to increased infrastructure construction growth and improvement in metrics for innovation and use of technology. Scores declined for both emerging and advanced markets, with the former’s score reaching 53.2 and the latter’s reaching 35.2 as at Q2. 

 

In total, only 15 of the 60 countries covered by the IRI saw negative movement in their scores in Q2. The UK was the exception to Europe’s positive quarter, with its score increasing by 1.4 points and subsequently dropping three places in the overall rankings. Increased government instability following an underwhelming victory for Theresa May in the June election combined with GDP growth only reaching 0.5% on the year to Q1 2017 were the main culprits behind this result.

 

Timetric’s Infrastructure Risk Index is designed to provide a standardized view of the underlying degree of country-level risk and investment opportunities in infrastructure for 60 major developed and emerging markets around the world. 

 

The IRI, which is updated on a quarterly basis, provides an analysis of current conditions and a forward-looking assessment of investment opportunities, in terms of rising demand for new infrastructure and a political and economic environment that would support such growth, and risks that could undermine growth prospects, either by preventing new projects from being executed, or through disruption or cancellation of existing projects.
 



Source: Company Press Release