This chapter of the IMF October 2020 Fiscal Monitor argues that governments need to scale up public investment to ensure successful reopening, boost growth, and prepare economies for the future. Low interest rates make borrowing to invest desirable. Countries that cannot access finance will however need to prioritize spending and increase investment efficiency. The chapter explains how investment can be scaled up whilst preserving quality. Increasing investment by 1 percent of GDP in advanced and emerging economies could create 7 million jobs directly, and up to 33 million jobs indirectly. Investments in healthcare, housing, digitalization, and the environment would lay the foundations for a more resilient and inclusive economy.
Join Raphael Espinoza, Giancarlo Corsetti and Beatrice Weder di Mauro in this joint seminar on the IMF's latest Fiscal Monitor.