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Public investment is key to Covid-19 recovery, says IMF

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Crisis lender estimates two to eight jobs are created for every US$1 mil spent on traditional infrastructure. FMTNews Covid19 IMF

WASHINGTON: Public investment should play a “central role” in the recovery of both emerging and advanced economies from the coronavirus downturn, the IMF said Monday ahead of its fall meetings.

Assuming investments are of “high quality,” the Washington-based crisis lender said increasing public investment by 1% of GDP could raise private investment by 10%, employment by 1.2%, GDP by 2.7% along with overall confidence in the recovery. The time to invest is now, officials said, with many countries still fighting off Covid-19 and people who lost their jobs amid the downturn looking for work.

 

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