Emerging markets infrastructure spending to surge

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 û which Merrill Lynch calls a long-term solution to inflation û is expected to be fuelled by decades of under-investment in power, transportation, and water. Merrill Lynch expects 70% of infrastructure spending to be conce…