IMF: Time is right for an infrastructure push

A new study published in the International Monetary Fund’s (IMF) World Economic Outlook suggests there is a strong case for advanced economies to take advantage of low borrowing costs to increase spending on key infrastructure projects. The study examines the effects of public investment in a large number of countries; it claims that many advanced economies are stuck in a low growth and high unemployment environment and borrowing costs are low. The report says ‘an increase in infrastructure investmen
October 6, 2014 Read time: 2 mins
A new study published in the 7899 International Monetary Fund’s (IMF) World Economic Outlook suggests there is a strong case for advanced economies to take advantage of low borrowing costs to increase spending on key infrastructure projects.

The study examines the effects of public investment in a large number of countries; it claims that many advanced economies are stuck in a low growth and high unemployment environment and borrowing costs are low.

The report says ‘an increase in infrastructure investment could provide a much-needed fillip to demand, and it is one of the few remaining policy levers available to support growth, given already accommodative monetary policy.’

In many emerging market and developing economies, infrastructure bottlenecks are putting a brake on how quickly these economies can grow. In these regions, investment ‘could help address existing and nascent infrastructure bottlenecks,’ according to the report, going on to say ‘and in all economies it would help boost medium-term output, as higher infrastructure capital stocks expand productive capacity.’

Related Content

  • CBO report on federal highway spending ‘a breath of fresh air’ says IBTTA
    February 17, 2016
    The International Bridge, Tunnel and Turnpike Association (IBTTA) applauds a new Congressional Budget Office (CBO) report, Approaches to Making Federal Highway Spending More Productive, which examines the economic advantages of tolling as one means of funding the nation’s highway system.
    Read More
  • Arup’s vision of urban mobility in 2050
    May 6, 2015
    Arup’s vision of the Future of Highways considers a wide range of factors that will impact on mobility towards the middle of the century. In its consideration of the Future of Highways through to 2050, international consultants Arup has taken a broad and pragmatic view of where society is heading and the effects that will have on the transport requirements. In terms of major drivers it not only cites
    Read More
  • Do buses need subsidies in congestion charging areas
    June 20, 2016
    David Crawford takes a look at the debate surrounding bus subsidies. Subsidies for public transport are a well-known and frequently-used policy tool directed at reducing the high environmental and social costs of peak-period traffic congestion. But at the end of last year the Swedish Centre for Transport Studies published a working paper entitled ‘Should buses still be subsidised in Stockholm?’ This concluded that the subsidy levels currently being applied in Stockholm could be nearly halved by setting bus
    Read More
  • Infrastructure funding and road user charging – debate continues
    February 1, 2012
    Jack Opiola provides an overview of the ongoing debate over US infrastructure funding and the progress – or lack of it – towards vehicles miles travelled road user charging. The future funding of transportation and mobility infrastructure is attracting increased attention. There has been sharp debate in the US, where landmark reports from the National Surface Transportation Infrastructure Financing Commission and the National Surface Transportation Policy and Revenue Study Commission both stated that the cu
    Read More

Highlighted Content