New report shows strong private investment in infrastructure in primary markets– especially in developed markets – but lowest level of capital raised in a decade

The GI Hub has today published Infrastructure Monitor 2023. This year’s edition reveals the mixed state of private investment in infrastructure, where positive trends like strong investment, growing use of sustainable finance, and resilient financial performance exist alongside challenges like low levels of capital raised and persistent disparities between high-income countries and other countries.

Infrastructure Monitor is the GI Hub’s comprehensive, annual analysis of the state of private investment in infrastructure.  It gives governments, investors, and industry a shared source of consolidated data and expert insights.

Some of the key findings of this year’s report are:

1. After a decade of stagnation, private investment in infrastructure projects in primary markets recovered in 2022. In some sectors, this investment even exceeded pre–COVID-19 levels.
2. In sharp contrast, available data from 2023 shows the lowest levels of capital raised in a decade.
3. The disparity between high-income countries and middle- and low-income countries persists, as high-income nations continue to attract a much larger share of global private investment in infrastructure.
4. Sustainable financing is increasingly being used to finance private investment in infrastructure.
5. Infrastructure valuations face downward pressures from multiple shocks including a high risk premium during the COVID-19 pandemic, rapid interest rate hikes, and climate change.

This year’s report includes sections on trends in private investment in infrastructure projects, the financial performance of infrastructure investments, and the availability of private capital for infrastructure, as well as two forthcoming supplements on blended finance and environmental, social, and governance (ESG) factors in infrastructure investment.

New this year are analyses of private investment levels that draw on a bespoke new dataset that more comprehensively covers transactions, particularly in developing markets. This new dataset almost doubles the value and number of transactions analysed in previous Infrastructure Monitor reports.

The Infrastructure Monitor 2023 report on private investment in infrastructure is now live – click through to read.