China Ranked No.1 on Total Returns from Infrastructure and Buildings in 2016, India to Catch up
November 28, 2016
Singapore generates the highest built asset income per capita in Asia at USD35,900, followed by Hong Kong at USD21,400, Global Built Asset Performance Index released today by building consultancy firm Arcadis pointed out.
The index provider said the index is an alternative indicator to measure a country’s economic performance, designed to better understand how built assets can power more growth to economies and contribute to stronger, sustainable performance.
China doubled the US in total returns from infrastructure and buildings at USD10.4 trillion. India, Japan and Indonesia rank No. 3, 4 and 6 in global ranking for overall built asset income. By 2026, India will overtake the US as it increases real returns from built assets by 126%, the research predicted.
Developed together with the Centre for Economics and Business Research (CEBR), the index examines the income generated by buildings and infrastructure – homes, schools, roads, airports, power plants, malls, railways, ports and all other fixed assets – across 36 countries that collectively represent 78% of global Gross Domestic Product (GDP).
Singapore has ensured its returns on built assets per capita increase steadily. High savings rates were ploughed into productive investments that created a manufacturing hub and steadily moved up the value chain, Arcadis said.
On China's rankaing, Adam Sutton, Asia Regional Leader of Business Advisory at Arcadis, said: “China’s economic growth is highly powered by its built assets, therefore it is no surprise to see the country rank number one in terms of absolute returns from built assets. Faced with a slowing economy, China has looked to new avenues to sustain its appetite for growth, with the One Belt One Road initiative being one of the most high-profile examples.”
The study predicts, by 2026, apart from China’s built asset wealth accumulation, which will experience a slight slowdown as the economy re-balances itself, India is predicted to overtake the US and Indonesia to overtake Japan.
The research also found Australia is the second best performing large economy, in per-capita terms, at an average of USD15,460 per person. The ongoing changes in Australia’s built asset investment will likely show a substantial shift in the types of assets being invested in.
By Staff Writer, APMR News
Article Published on : 2016 November 28, 14:45 pm GMT+800
Article Last Updated : 2016 November 29, 11:10 am GMT+800
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