Research by KHL Group, shows that global fiscal stimulus could add $560 billion per year to the world's construction output in 2009 and 2010. This is equivalent to an additional 7 per cent on top of the world's current annual construction output of about $7.8 trillion, and equates to more than the annual construction output of Germany, the fourth biggest market in the world. The total additional spending to shore-up economic growth in 20 major economies is set to exceed $3 trillion, of which $1,251 billion has been ear-marked for construction.

Most of this will be spent in 2009 and 2010. Of all the major economies, China's extra investment in construction will be the most over the next two years, with $708 billion of its $985 billion stimulus package earmarked for infrastructure. That investment of $354 billion per year for two years is equivalent to an extra 40 per cent boost to China's $850 billion per year construction output. In Europe, Germany has unveiled a $102 billion stimulus package, of which some $36.8 billion will be invested in infrastructure. Meanwhile France has announced it will invest $22 billion in infrastructure and public works and Spain's stimulus package includes $22.8 billion for similar schemes.

The Australian Government has already announced more than $40 billion in economic stimulus since October including $4.7 billion in short-term infrastructure projects. The Government's Building Australia Fund will be used to fund a priority list of larger infrastructure projects short-listed by Infrastructure Australia. There are calls for the Australian government to announce a new stimulus package of at least $30 billion, preferably $40 to 50 billion. This time around, industry commentators say the money should not be wasted on tax cuts and cash hand-outs as the last $10 billion was, but should be seen as an opportunity to quickly rebuild the national infrastructure, not to get a kick in the polls with tax cuts.