Short-term economic impact likely modest for China’s ‘One Belt, One Road’

SINGAPORE (May 3): China’s ambitious One Belt, One Road (OBOR) initiative is likely to have “modest” short-term impact on total investment and overall economic growth in the vast region, says Oxford Economics.

Launched by President Xi Jinping in 2013, OBOR aims to create an infrastructure network by building roads, ports and railway tracks along ancient trading routes that will span 65 countries and connect some 60% of the global population.

“While it’s hard to quantify the total number of projects and amount of financing, the China Development Bank alone has reserved US$890 billion ($1.24 trillion) for over 900 projects, highlighting the magnitude of this undertaking,” says Oxford Economics’ He Tianjie and Louis Kuijs in a research briefing on April 27.

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