Published in Last Word
In its World Economic Outlook, the International Monetary Fund said now is a golden opportunity for advanced and developing countries to increase investment in infrastructure to spur short- and long-term growth.
“In countries with infrastructure needs, the time is right for an infrastructure push: borrowing costs are low and demand is weak, and there are infrastructure bottlenecks in many emerging market and developing economies.”
The report notes a substantial decline in public capital spending as a share of output over the last three decades. Reversing that trend with debt-financed investment would boost GPD through short-term demand and long-term productivity.
U.S. Treasury Secretary Jacob Lew cited the IMF findings to call on Congress to use savings from corporate tax reform to pay for increased infrastructure funding.
Click here to view the IMF report.
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