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

  • FTA calls for infrastructure investment in Chancellor’s Spending Review
    September 11, 2015
    The Freight Transport Association (FTA) has told the Chancellor that investment in roads and rail infrastructure is key to the UK’s future growth in its submission ahead of his 2015 Spending Review. Chancellor George Osborne will publish his review on 25 November, setting out how the Government will invest in priority public services and deliver the US$31 billion further savings required to eliminate Britain’s deficit by 2019-20. FTA says the UK economy’s reliance on freight means investing in the s
    Read More
  • Tolling systems - interoperability is key
    January 25, 2012
    Is US tolling as fragmented and divided as some would have you believe? And are the technology suppliers so very entrenched? ITS International spoke to the market's leading suppliers. A few years back, the prevalent view was that the North American tolling market was characterised by fragmented, proprietary solutions, each existing in splendid isolation. The reality is that a combination of pragmatism and good old market forces have seen some concerted moves made towards interoperability in many areas.
    Read More
  • Need for simpler urban tolling solutions
    January 10, 2013
    A common assumption, even amongst informed observers, is that there’s but a handful of urban charging schemes in operation around the world and scant prospect of that changing any time soon. Larger city-sized schemes such as Singapore, London and Stockholm come readily to mind but if we take a wider view and also consider urban access control and Low Emission Zones (LEZs) then the picture changes rather radically. There is a notable concentration of such schemes in Europe but worldwide the number is comfort
    Read More
  • Future of US cooperative infrastructure networks
    July 31, 2012
    Peter H. Appel, the new Administrator of the USDOT's Research and Innovative Technology Administration, on his vision of the US's future cooperative infrastructure networks. Peter H. Appel comes to the post of Administrator of the US Department of Transportation's Research and Innovative Technology Administration (RITA) from a background in transportation-related work which stretches back over 20 years. Most recently with management consultancy A. T. Kearney, Inc., where he focused on busin
    Read More

Highlighted Content