Public Investment for the Recovery

2021-07-19T13:05:20-04:00October 5, 2020|

By Vitor Gaspar, Paolo Mauro, Catherine Pattillo, and Raphael Espinoza

عربي, 中文, Español, Français日本語, Português, Русский  

Governments around the world are taking extraordinary measures to respond to the COVID-19 crisis. While maintaining the focus on addressing the health emergency and providing lifelines for households and businesses, governments need to prepare economies for the transition to the post-COVID-19 world—including by helping people get back to work. […]

Chart of the WeekSouth Africa: Bridging the Income Divide

2020-02-07T08:41:27-05:00February 7, 2020|

By IMFBlog

South Africa suffers among the highest levels of inequality in the world. As our Chart of the Week shows, the country’s wealth is concentrated in the upper levels of society. The top 20 percent of the population holds over 68 percent of income, while the poorest 40 percent possess only 7 percent of income. […]

Adapting to Climate Change—Three Success Stories

2019-03-14T13:42:52-04:00March 20, 2018|

By Evgenia Pugacheva and Mico Mrkaic

March 20, 2018

When governments subsidize private investment in adaptation, the economic costs of extreme weather events can be reduced (photo: Leolintang/iStock by Getty Images).

Climate change is one of the greatest threats facing our planet. Its negative effects on health, the biosphere, and labor productivity are already being felt throughout the […]

Public Roads with Private Money: A Way Ahead

2019-03-27T11:39:45-04:00February 29, 2016|

By iMFdirect

When you drive over potholes on downtown streets, are forced to make large detours to cross rivers lacking bridges, and finally arrive to find no cell coverage, connections between the global infrastructure investment gap and your pension fund might not be the immediate thing that comes to mind. But it should, because:

  • Huge pools of available assets: pension funds, insurance companies, mutual funds and sovereign wealth funds sit on $100 trillion in assets. To compare: U.S. nominal GDP in the third quarter of last year was $18 trillion.
  • Huge infrastructure investment gap: between $1 to 1.5 trillion […]

Commodity Blues: Corporate Investment in Latin America

2019-03-27T17:15:42-04:00May 12, 2015|

Nicolas MagudBy Nicolás Magud

(Versions in Español and Português)

Private investment has been decelerating throughout emerging markets since mid-2011, and Latin America has been no exception (see Chart 1). This trend has raised concerns not only because weaker investment has played an important role in the broader regional slowdown, but also because Latin America’s investment rates were lower than in most other regions even before the slowdown began.

Slide1

This blog looks […]

Securitization: Restore Credit Flow to Revive Europe’s Small Businesses

2019-03-27T17:28:01-04:00May 7, 2015|

By Shekhar Aiyar, Bergljot Barkbu, and Andreas (Andy) Jobst

If financing is the lifeblood of European small businesses, then the effect of the financial crisis was similar to a cardiac arrest. The flow of affordable credit from banks was choked off and small and medium-sized enterprises (SMEs) were hit hardest. Today, with bank lending still recovering from that shock, smart policy actions could open up securitization as a source of financing to help small businesses start up, flourish and grow.

SMEs are vital to the European economy. They […]

Africa’s Growth Puzzle: Better Ways to Fill Infrastructure Gaps

2017-04-15T14:12:51-04:00February 28, 2012|

The issue of reviving or maintaining economic growth is a the forefront of policymakers’ minds all around the world. Of course, the policies needed to achieve that differ from region-to-region, country-to-country. For many countries in Africa, weak infrastructure is an obstacle to raising growth. In a recent interview with the IMF’s Survey online magazine, Andrew Berg of the IMF’s Research Department (and one of our contributing bloggers) discusses how Africa can step up investment in its infrastructure by augmenting traditional sources of financing with foreign borrowing and private investment.

Tipping the Scales—Rebalancing Growth in Asia

2017-04-15T14:24:49-04:00April 29, 2011|

The center of global economic growth is moving from the West to Asia. Over the last 30 years, the Asian economy has grown by over 7 percent each year, doubling in size every decade. This success has been based in large part on outward-oriented growth strategies. But, there is growing awareness that Asia’s export-led growth needs to be balanced by a second engine of growth. How to achieve this rebalancing is a key theme of a new book from the IMF, launched in Hong Kong, on Rebalancing Growth in Asia—Economic Dimensions for China.
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