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Investor Presentaiton

Global megatrends (continued) Megatrend 3 Demographic shifts A large and growing proportion of the world's population lives in cities, and the median age is rising due to longer life expectancies and lower fertility. While it is well known that the populations of most European countries and Japan are ageing, it is less well known that population ageing is also occurring in a number of other Asian countries. The proportion of the East-Asian population over the age of 65 will grow by 22 per cent between 2015 and 2020.25 China's population growth is expected to stabilise over the next decade and decline from 2030.26 Japan's population is projected to decline by almost 20 per cent by 2050.27 Korea's population is stabilising and is projected to decline from around 2030.28 In contrast, the populations of India, Indonesia and the Philippines will continue to grow over the next three decades. 29 By 2050, 66% of the world's population is projected to be living in cities, up from 54% in 201530 Megatrend 4 Pressure on natural resources and the environment The world has limited natural resources, yet has a growing population with increasing demands for energy, water and food. Governments, businesses and communities are under pressure to find alternative, more efficient and renewable energy sources. Population growth, development and urbanisation will increasingly place pressure on air and water quality as already experienced in many countries. Problems with water quality and land degradation will make it difficult for China, India, Indonesia and other large Asian neighbours to produce the premium food products that their middle classes are demanding.³¹ Following the 2016 Paris Climate Change Agreement, countries, particularly in Asia, will be stepping up their efforts to limit carbon emissions, turning to clean-coal technologies, renewable energy sources and gas as a transitional fuel. Demand for energy is forecast to grow by as much as 50% by 203032 Megatrend 5 Infrastructure development in emerging and less-developed economies Over the next five years an enormous amount of infrastructure investment will be required in emerging economies. In addition to its domestic infrastructure development, China unveiled its One Belt One Road (OBOR) initiative in 2013. This involves re- establishing the Silk Road through Central Asia, West Asia, the Middle East and Europe, plus a maritime Silk Road through the South China Sea, the South Pacific Ocean and the Indian Ocean. Much of the funding for this vast infrastructure program will come through the newly established Asian Infrastructure Investment Bank led by China. Fully implemented, the OBOR could involve investment of up to US$8,000 billion. This presents opportunities to Queensland exporters, particularly in the state's North. Africa is another area that will require a great deal of infrastructure investment, with its population growing faster than that of any other continent.33 China will construct 2 cities the size of London each year for the next 20 years34 18 Queensland Trade and Investment Strategy 2017-2022
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