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Infrastructure spending trends

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Infrastructure spending trends - PowerPoint PPT Presentation


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Infrastructure spending trends. The potential impact on growth . Labour multipliers for the construction sector. GDP multipliers for the construction sector. Direct 0.23 . Direct 3.5 . Total 1.21. Total 8.8. Induced 0.46 . Induced 2.0 . Indirect 0.52 . Indirect 3.3 .

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Presentation Transcript
slide3
The potential impact on growth

Labour multipliers for the construction sector

GDP multipliers for the construction sector

Direct

0.23

Direct

3.5

Total 1.21

Total

8.8

Induced

0.46

Induced

2.0

Indirect

0.52

Indirect

3.3

slide4
Current levels of underspending

Actual infrastructure expenditure as a % of budgeted, 2012/13

Source: National Treasury Budget Review (2014)

slide5
Impact of underspending

Infrastructure spending 2013/14

R847 billion over 3 years

Assuming a 50% import component

Total local spending of approximately

R400 billion

840 000

R30.1 billion

720 000

R26.1 billion

Additional income into the economy

Additional income into the economy

Average number of Temporary jobs created over 3 year period

Average number of Temporary jobs created over 3 year period

Actual spending

Budgeted spending

Actual spending

Budgeted spending

GDP

Impact

Employment

Impact

slide6
How are we doing i.t.o. infrastructure?

Overall ranking 53

Inadequately educated workforce

This little island is beating us

Restrictive labour regulations

Inefficient government bureaucracy

Health and education

135

Higher

education

95

Labour

market

116

Innovation

39

Financial

markets

3

Institutions

41

Economy

95

Infrastructure

66

slide7
How are we doing i.t.o. infrastructure?

Infrastructure

66

The Global Competitiveness Report (2013-2014)

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