by Rita Raagas De Ramos

Merrill Lynch has raised its emerging markets infrastructure forecast to $2.25 trillion annually, or 5% of GDP, from $1.25 trillion over the next three years, due to more aggressive government spending programmes and higher analyst estimates.

Infrastructure spending-which Merrill Lynch calls a long-term solution to inflation-is expected to be fuelled by decades of under-investment in power, transportation, and water. Merrill Lynch expects 70% of infrastructure spending to be concentrated in China, the Middle East and Russia.

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Posted by boyang at June 25, 2008 12:45 PM