The International Monetary Fund (IMF) is urging countries to take advantage of the low interest rate environment caused by the novel coronavirus COVID-19 pandemic by investing in public infrastructure.
“The COVID-19 pandemic of 2020 has strengthened the case for fiscal policy action and heightened its urgency,” stated the IMF in a fiscal report. “Low-for-long interest rates present an opportunity for quality public investment across the world to boost growth.”
According to Reuters, which was believed to be the first to report on the IMF’s announcement, IMF suggested that countries should generally invest in health systems, infrastructure, low-carbon technologies, education and research in times of economic weakness.
IMF economists said that modernizing aging infrastructure in advanced countries and improving infrastructure needs in developing countries are crucial and should be prioritized.
In April, the IMF predicted the global economy
