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Private Participation in Infrastructure (PPI) : 2021 Annual Report (Inglés)

As the world enters the third year of the COVID-19 crisis, we see that aggregate output in low- and middle-income countries rebounded in 2021, after a sharp decline in 2020. Many middle-income countries have recorded substantial vaccination rates, and international trade has picked up. Along these lines, private participation in infrastructure (PPI) investment commitments in 2021 also bounced back from their historic lows in 2020. Despite all these positive notes, we see a number of daunting challenges ahead for the global economy, particularly for developing countries. The infrastructure investments outlook is dampened by a sharp rise in policy uncertainty and an escalation in geopolitical tensions, especially, in Europe and Central Asia. While writing this report, we have also found that recovery from the deep recession triggered by the COVID-19 pandemic has been uneven, leaving some regions behind. Worse, as economic stimulus slows and credit conditions tighten, there will be stronger headwinds on the private sector playing a more active role in filling the infrastructure gap.

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