Excerpt: Europe is facing a staggering infrastructure investment gap that could reach $2 trillion by 2040. This blog breaks down which sectors—from roads and rail to telecommunications—require the most urgent financial attention to ensure economic resilience and future growth.

Europe’s $2 Trillion Infrastructure Deficit: A Sectoral Breakdown

As Europe modernizes its economy and pushes toward climate and digital goals, its infrastructure is falling behind. According to data from Infrastructure Outlook, the continent is expected to face a $2 trillion infrastructure investment shortfall by 2040—a dramatic rise from $538 billion in 2024.

However, the shortfall is not equally distributed across sectors. Some areas are far more underfunded than others, particularly those tied to transportation and energy. Let’s look at which sectors are most in need of urgent investment.

Investment Gap by Sector: Europe

Top Priorities: Roads, Rail, and Energy

Transportation infrastructure dominates the list. Roads alone account for a $881 billion shortfall, followed by rail with a $603 billion deficit. These sectors are essential not only for regional connectivity but also for reducing emissions through better public transport networks and modernized logistics systems.

Coming in third is the energy sector, which requires an estimated $250 billion in additional funding. This investment is vital for supporting the EU’s goal to reach net-zero carbon emissions by 2050 through renewable energy sources, smart grids, and storage technologies.

Telecom and Digital Gaps

Telecommunications, often overlooked, face a $46 billion shortfall. In the post-pandemic era, digital infrastructure has become a core driver of economic competitiveness and innovation. Expanding broadband, 5G, and data infrastructure will be key for supporting both private industry and public services across Europe.

Global Context: Infrastructure Deficits Worldwide

Europe’s infrastructure challenges mirror broader global trends. Worldwide, roads are also the sector with the largest funding gap. Here’s how global investment needs break down by 2040:

Globally, the infrastructure investment gap is expected to reach $15 trillion by 2040. The consistent need across transportation, energy, and digital sectors reflects shared global priorities for sustainable development and economic modernization.

Building for Europe’s Future

To avoid long-term economic strain and ensure resilience, European policymakers and investors must channel resources into the most underfunded sectors. Roads, railways, and energy should be at the top of the agenda, followed closely by telecom and water infrastructure. Strategic investment now can prevent far greater costs later—and help Europe maintain global competitiveness in the decades ahead.

The world economy is changing fast — and two countries everyone is watching closely are India and China. For a long time, China has been known as the world’s factory and one of the fastest-growing economies. But now, its growth is starting to slow down. In 2025, China’s economy is expected to grow by just 4%.

On the other hand, India is growing much faster — with a growth rate of 6.2% expected in 2025. That’s a big difference.

India has a young population, strong tech growth, and rising local demand. All of this is helping its economy rise steadily. So the big question now is: Can India really catch up with China? And maybe even overtake it in the future?

India vs China: A Tale of Two Growing Giants

When we look at the numbers for 2025, it’s easy to see a big difference between how fast India and China are growing.

According to the latest data:
India’s economy is expected to grow by 6.2% in 2025
China’s economy is expected to grow by only 4%

That means India is growing faster than China, even though China still has a bigger economy overall.

Why India Has an Advantage

India has a younger population than China, with more than 50% of its people under 30^[1]. A younger population means:

1. More people ready to work
2. More demand for goods and services
3. A strong, energetic workforce for future industries

China, in contrast, is facing an aging population crisis, which may slow down its productivity and increase healthcare and retirement costs over time.

What’s Helping India Grow?
India’s recent progress is driven by multiple factors:
A fast-growing digital economy with over 800 million internet users^[2].
Government investments in infrastructure and manufacturing^[3].
Major companies shifting supply chains to India to reduce dependence on China^[4].
According to OECD, A booming startup ecosystem, especially in fintech, edtech, and health tech.

What Is Slowing China Down?
Although China remains a powerful economy, its growth is slowing due to:
* An aging workforce^[5].
* Decreasing exports due to global tensions and supply chain shifts^[6].
* According to CNBC, A real estate crisis that is affecting banks and households.
* Less foreign investment compared to past decades^[7].

Can India Really Overtake China?
In total GDP, China is still far ahead of India. But if India keeps growing faster, it will gradually close the gap over the next 10–20 years^[8]. Many analysts believe India could become the third-largest economy by 2030. With consistent policy support, tech innovation, and global interest, India has a strong chance to reshape the world economy.

India’s economy is expected to grow by 6.2% in 2025, which is a little lower than earlier estimates of 6.5%, mainly due to global problems and trade tensions, says the IMF. Still, India’s growth is stronger than most other countries in the region, thanks to rising spending in rural areas. In comparison, growth in emerging Asian countries like the ASEAN group is falling and expected to be only 4.5% in 2025 and 4.6% in 2026.

Last year, China’s economy grew by 5.0%, which matched the government’s goal. But new trade tariffs have started to slow things down. These tariffs reduced the benefits of strong growth at the end of 2024 and more government spending. As a result, the IMF has lowered China’s growth forecast for 2026 to 4.0%, down from 4.5%, mainly because of ongoing trade tensions and policy uncertainty.

India is no longer just an emerging country — it is becoming a key global player. With faster growth, a younger population, and growing foreign interest, it is possible that India could one day catch up or even overtake China economically.The journey won’t be easy. But the signs are clear — India is rising, and the world is watching closely.

Remittances — money sent by people working abroad to their families back home — are a lifeline for millions. In 2024, these money flows reached record levels in some countries, showing how strong family bonds remain across borders.

In 2024, India became the top country in the world for receiving remittances, with around $129 billion^[9] sent home by Indians living and working abroad. This shows how important family support is across borders. Mexico received $66 billion, while the Philippines got $39 billion, both ranking high on the list.

But it’s not just about the total amount for some smaller countries, remittances make up a large part of their economy. For example, Tajikistan gets 38% of its total income from money sent by its citizens working abroad. Nepal also depends heavily on remittances, which make up 25% of its GDP.

These money transfers help families buy food, pay school fees, and cover daily expenses. Remittances play a big role in reducing poverty and supporting economic growth in many countries. Even developed countries like France and Germany are on the list, showing how global and connected our world really is.

At the top of the list is India, which received an incredible $129 billion, the highest in the world. Mexico comes second with $66 billion, followed by the Philippines with $39 billion. These countries have large populations working overseas, especially in the U.S., Gulf nations, and Europe.

Other countries in the top 10 include France ($36.9B), Pakistan ($34.1B), China ($29.1B), and Bangladesh ($22.1B). Interestingly, some smaller countries like Guatemala and Egypt also make the list due to the strong support from their citizens abroad. These funds help families with education, healthcare, and daily needs and in some nations, remittances are a key part of the national economy.

Here are the top 10 countries where remittances make the biggest share of the national income in 2024.

Leading the list is Tajikistan, where remittances are an amazing 38.4% of its GDP! Close behind is Tonga, with nearly 42%, showing how vital this money is for their daily life. Other countries with high shares include Lebanon (30.7%), Nicaragua (26.1%), and Honduras (26%).

Countries like Nepal (25.4%), El Salvador (24%), and Lebanon show how important remittances are for supporting families and boosting local economies. Even small islands like Bermuda (21.5%) and Comoros (22.6%) rely on remittances for a big part of their GDP.

In these places, remittances don’t just help families—they’re key to the country’s survival and growth.

Remittances form a small fraction of GDP in several major economies. Leading the list, Kuwait and Angola both have an extremely low remittance share of 0.01%, reflecting minimal dependence on money sent from abroad. The United States follows with only 0.03%, while Chile and Papua New Guinea register similarly low shares of 0.02% and 0.03%, respectively. Other countries with low remittance shares include Japan (0.11%), China (0.16%), Uruguay (0.17%), Cayman Islands (0.18%), and Israel (0.19%). These figures highlight limited reliance on remittances compared to countries where they play a vital economic role.

Here is the comprehensive data listing all countries and the remittances they have received^[10][11]. This dataset provides valuable insights into the flow of remittance funds across the globe, highlighting the economic impact of money sent home by migrant workers. It covers remittance amounts and their share as a percentage of each country’s GDP, offering a detailed overview of how significant remittances are to different national economies.

Dataset of remittance-receiving countries