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.’

For more information on companies in this article

Related Content

  • US transportation policy needs to restart to sort shortcomings
    August 2, 2012
    Joshua Schank has no illusions when it comes to what he and the Bipartisan Policy Center are suggesting in Performance Driven: New Vision for US Transportation Policy. Released in June of this year, this major report (see Sidebar, 'The Shift in Thinking') advocates no less than a root-and-branch overhaul of the way in which the US transportation system is run - how money is allocated and how the beneficiaries of that funding are selected. As its name suggests, Schank and his colleagues are urging senior US
    Read More
  • Capital markets financing can bridge the infrastructure gap, says EBRD
    April 18, 2016
    Capital markets financing for infrastructure projects can help bridge the infrastructure gap, President of the European Bank for Reconstruction and Development (EBRD) Sir Suma Chakrabarti told the inaugural Global Infrastructure Forum 2016 in Washington. Addressing development partners, Sir Suma said: “Emerging markets and development economies, supported by the multilateral development banks, need to re-double their efforts to create the right conditions for capital market transactions for infrastructur
    Read More
  • Managed motorways, hard shoulder running aids safety, saves time
    January 30, 2012
    The announcement that, in 2012/13, work to extend Managed Motorways to Junctions 5-8 of the M6 near Birmingham in the West Midlands is scheduled to start marks the next step for the UK's hard shoulder running concept, first introduced on the M42 in 2006. The M6 scheme is in fact one of several announced; over the next few years work will start on applying Managed Motorways to various sections of the M1, M25 London Orbital, M60 and M62. According to Paul Unwin, senior project manager with the Highways Agency
    Read More
  • The case for integrating urban traffic control and parking
    February 3, 2012
    Although urban traffic control and parking management are inextricably linked in so many ways, there remain fundamental differences which undermine closer integration. Car parking guidance systems can have a significant, positive impact on congestion in town and city centres, however conflicting business models still stand in the way of the more profound integration of car parking management and Urban Traffic Control (UTC) systems.
    Read More

Highlighted Content