New Zealand to invest $129b in infrastructure over next decade

The latest Infometrics Infrastructure Pipeline Profile shows that average infrastructure investment across the country is expected to be 28% higher over the next 10 years compared to the 2010-2018 period. A total of $129 billion in capital projects are estimated to be built over the 2019-2029 period.

Wanting to spend, but needing to plan

One key infrastructure issue that has arisen since we prepared our last set of forecasts in September and October is the change in focus for transport spending under the new government. Although both National and Labour emphasised the need for investment in infrastructure, National’s attention was very clearly on roads, while the Labour-led coalition is more focused on rail and public transport.

The Panama Canal: mosquitoes, a soft voice and a big stick

A sense of intrigue prompted David Kennedy to visit Panama City – an oasis of wealth and success in Central America.  He was vaguely aware of its economic and historic importance: it is a metropolis of futuristic skyscrapers, an airline hub, a tax haven, a financial hub, a nexus of global trade, and a United States outpost of sorts.  He knew that all these attributes related, in one way or another, to the Panama Canal.

The Wider Economic Benefits of Greater Connectivity

The Oresund bridge between Copenhagen in Denmark and Malmo in Sweden, a truly transformational (€4 billion) transport project that led to economic benefits much greater than would be estimated using standard cost-benefit analysis.
Although something on that scale is unlikely in New Zealand, it does raise the question of whether investing in large transport infrastructure projects could deliver benefits additional to those estimated using the NZ Transport Agency’s Economic Evaluation Manual.

Long-term implications of high net migration

New Zealand has gained around 72,000 more people in the past year according to arrival card data, and we’re feeling the strain of squeezing all these extra people into our cities.  But further analysis of visa data suggests that there are longer-term implications for these high arrival levels that, if left unchecked, could pose a problem for policymakers when we come off the high point in the business cycle.