New infrastructure: China takes the lead, to mitigate slowdown and power future growth
Article information and share options
China's government will leverage "new infrastructure" to mitigate economic slowdown and power growth. This reflects an inwardlooking strategy to boost domestic demand and also manage external headwinds. Investments in "new infrastructure" will drive further expansion of the digital economy, which will account for half of national output by 2030. This will also extend the boundaries of insurability and open new investment opportunities.
- China will invest in "new infrastructure" as part of fiscal stimulus to mitigate economic slowdown and boost growth
- In absolute terms, there will be a near-fivefold increase in investment (USD 1800 billion) in new infrastructure spanning this decade.
- New infrastructure will accelerate growth of the digital economy, which will account for 50% of national output by 2030.
- Many commercial lines such as engineering and liability insurance, will benefit.
- Motor insurance will be materially impacted by digital transformation, with a likely declining share of total P&C premiums over time.
Economic Insights, direct to your inbox
Our Economic Insights series looks at current economic topics and their implications for the re/insurance industry.
Subscribe to receive each edition of Economic Insights.