More Infrastructure, More Productivity?

For the IDB, investment in infrastructure is the most important priority when increasing the probability of improving productivity and reaching higher per capita income levels in the countries of the region.

Tuesday, April 16, 2019

The Inter-American Development Bank (IDB) published its report "Building Opportunities for Growth in a Challenging World," in which it addresses the benefits of infrastructure investment and its influence on productivity growth in the countries of the region.

According to the IDB study, labor productivity "... in agriculture, for example, would benefit from investments in all three infrastructure-related sectors: an estimated 1% increase in transport productivity increases productivity in agriculture by 1.2%; an estimated 1% increase in electricity, gas and water productivity increases productivity in agriculture by 0.5%.

In the case of manufactures, a high-growth sector worldwide, a 1 per cent increase in construction productivity is estimated to increase productivity by 0.42 per cent (the other infrastructure-related sectors do not seem to influence manufacturing productivity).

Adding up the results in all sectors, it is established that investments in the electricity, gas and water sector increase productivity in agriculture, mining and manufacturing. Investment in transport is particularly relevant to productivity growth in the agriculture and services sectors. And investments in construction are relevant to productivity growth in all economic sectors
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More on this topic

Guatemala: 2019 Better Than 2018?

December 2018

The Bank of Guatemala expects next year's economic growth to be better than in 2018, which would be caused by higher public spending and the growth of family remittances.

Authorities of the Bank of Guatemala (Banguat) informed that the Guatemalan economy will close 2018 with a nearly 3% growth, however, for next year is expected that the increase in GDP will be in the range between 3% and 3.8%.

Panama: Economy to Grow 5.8% in 2017

February 2017

The government has based its forecast of GDP growth on the recovery of activity in the Canal and public and private investment in infrastructure projects.

From a statement issued by the Ministry of Economy and Finance: 

Fulfilling the legal mission to project the evolution of gross domestic product (GDP) of Panama, the Ministry of Economy and Finance (MEF) has reported that the estimated growth of the economy for this year is 5.8%, driven by dynamism in the sectors of construction, mining and quarrying, financial intermediation and supply of electricity, gas and water. 

Panama: Economic Figures for 1st Quarter of 2016

June 2016

The sectors of the domestic economy which had the most influence in the 4.6% GDP growth in the first quarter of the year compared to the same period in 2015 were financial intermediation and construction.

From a statement issued by the Comptroller General of the Republic:

Guatemala's GDP Grows 3.6%

October 2010

Between April and June 2010, nine of the 11 sectors which make up the Gross Domestic Product (GDP) experienced an increase.

According to Banco de Guatemala (Banguat), the sectors which showed negative numbers in the second quarter were electricity, construction and water collection.

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