I. Three Stylized Facts Public Investment Levels Have Fallen Change - - PowerPoint PPT Presentation

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I. Three Stylized Facts Public Investment Levels Have Fallen Change - - PowerPoint PPT Presentation

Nov 30, 2023 265 likes •337 views

I. Three Stylized Facts Public Investment Levels Have Fallen Change in Public Investment since 2009 Public Investment (in percent of GDP) (in percent of GDP) 4.0 0.0 EU 28 -0.2 Constrained Unconstrained 3.5 -0.4 -0.6 3.0 -0.8 -1.0

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SLIDE 2

2.5 3.0 3.5 4.0 1990 1995 2000 2005 2010 2015

EU 28 Constrained Unconstrained

  • 1.2
  • 1.0
  • 0.8
  • 0.6
  • 0.4
  • 0.2

0.0 Unconstrained EU Avg Constrained

  • I. Three Stylized Facts

Public Investment Levels Have Fallen

Change in Public Investment since 2009 (in percent of GDP) Public Investment (in percent of GDP)

Source: IMF Public Investment Database.

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SLIDE 3
  • I. Three Stylized Facts

Public Investment Spending is not Counter-Cyclical

Correlation of the Growth in Public Investment to Economic Slack

  • 3
  • 2
  • 1

1 2 3

  • 15
  • 10
  • 5

5 10 15

Output Gap Change in public investment

Source: IMF staff estimates.

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SLIDE 4

20 40 60 80 100 120 140 10,000 20,000 30,000 40,000

Infrastructure index - Hybrid indicator (Output) Public Capital Stock per Capita (Input)

All Countries EU

Efficiency Frontier

  • I. Three Stylized Facts

Public Investment is not that Efficient

Public Investment Efficiency

Source: IMF staff estimates.

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SLIDE 5
  • II. The EIB’s Role – Boosting Spending

EFSI Funding is Growing in Importance

EFSI Capital, Approved Projects and Targets (EUR billion)

Sources: EC Fact Sheet and EIB 2017/18 Investment Report. 100 200 300 400 500 600 Capital EFSI approved Targetted investment

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SLIDE 6
  • 2.0
  • 1.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 EST ESP BGR PRT ITA GRC LTU SVK FIN LVA BEL GBR SVN FRA IRL DEU LUX NLD POL MLT AUT SWE CRT CYP ROM DNK CZE HUN EFSI Investment Output gap

  • II. The EIB’s Role – Counter-cyclical Funding

EFSI Funding Going to the Weakest Economies

EFSI Approved Funding vs 2016 Output Gap (in percent of GDP)

Sources: EFSI Fact Sheet & IMF WEO.

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SLIDE 7
  • II. The EIB’s Role – Improving Efficiency

Weaknesses in Public Investment Management

Results of PIMA Assessments

Fiscal Rules National & Sectoral Planning Central-Local Coordination Management of PPPs Company Regulation Multiyear Budgeting Budget Comprehensiveness Budget Unity Protection of Investment Availability of Funding Transparency of Execution Monitoring of Assets

EU Average ADV Average

Allocating

Project Appraisal Project Selection Project Management

Source: IMF staff estimates.

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