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Increasing Public Investment, Fostering Digitalization, and Supporting the Green Transition: A Difficult Challenge
Author:
Xun Li
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and
Yu Ching Wong
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2025: Issue 019
Language:
English
Publication Date:
26 Mar 2025
DOI:
https://doi.org/10.5089/9798229004657.018
ISBN:
9798229004657
ISSN:
2958-7875
Pages:
19
Keywords:
Belgium; fiscal policy; fiscal consolidation; public investment; green transition; digitalization; C. addressing investment; fostering digitalization; electricity price; investment gap; investment need; Public investment spending; Gross fixed investment; Infrastructure; Non-renewable resources; Global
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IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
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Public investment in Belgium has been low historically. Against severe budgetary constraints and fiscal consolidation requirements, public investment should however be preserved or, ideally, increased to mitigate the demand impact of consolidation and enhance productive capacity to lift potential growth. Furthermore, there is growing need for strategic public investment to facilitate digitalization and the green transition. This paper examines these intertwined challenges and proposes policy measures to help bolster public investment.
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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund