China’s belt and road projects attracted more investment in 2016, says PwC

China has seen an increase in the average size of projects under the Belt and Road Initiative since the plan was unveiled in 2013 as part of a strategy to promote Eurasian trade and integration, according to a new PwC’s report.

Data shows that the average project size in China increased by 14 per cent in 2016, with noteworthy increases in utilities and transportation, according to the accounting firm. The expansion was largely driven by public expenditure on infrastructure which is a central pillar of Beijing’s economic policy.

In the belt and road region, which spans three continents and 66 countries from Lithuania in Europe to Indonesia in Asia, the value of the average project was up 47 per cent year on year in 2016, said PwC.

The total value of invested projects in the belt and road region over the past four years grew at a compound annual growth rate (CAGR) of 33 per cent compared with a figure of 27 per cent in China for the same period.

“Rising average project value is the flip side of growing uncertainty and feeble growth in regional markets, with investors and public authorities pooling investments away from riskier, non-essential ventures,” said Gabriel Wong, head of corporate finance for PwC China & Hong Kong.

In the belt and road region, PwC said the number of new announced projects was up 2.1 per cent by value to roughly US$400 billion in 2016.