Colombia’s infrastructure expansion faces major delays

2017 ◽  
Keyword(s):  
Growth Rates ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Election Campaign ◽  
Infrastructure Projects ◽  
Caribbean Coast ◽  
Content Type ◽  
Investment Opportunities ◽  
The Caribbean ◽  
New Infrastructure

Significance The claims follow the ANI’s announcement on February 22 that it would cancel the contract of an Odebrecht-led consortium to build the Ruta del Sol 2 highway, linking central Colombia to the Caribbean coast. Impacts The risk of potentially intrusive investigations will remain high for firms with commercial or contractual links to Odebrecht. Delays in completion of infrastructure projects could bring Colombia’s GDP growth rates for 2017 below the current forecasts of 2.7%. Later in the year, new infrastructure investment opportunities will open as corruptly awarded contracts are resubmitted for tender. Allegations that Santos’s 2014 election campaign received Odebrecht funding could harm his Party of the U in the 2018 election.

Infrastructure spending may pick up in Central Europe

2016 ◽  
Keyword(s):  
Central Europe ◽  
Growth Rates ◽  
Financial Services ◽  
Public Investment ◽  
Private Investment ◽  
Infrastructure Investment ◽  
Economic Forecast ◽  
Infrastructure Projects ◽  
Content Type ◽  
Political Landscapes

Subject The expected rebound from declining infrastructure investment in Central Europe in 2016-17. Significance In its latest Economic Forecast, the European Commission expects a short-lived decline in public investment in three Central European (CE) countries. This is due to a 'one-off effect', as absorption rates for EU structural and cohesion funds dip across the region, with the closure of the 2007-13 programme period. This will weigh on headline GDP, with the Commission forecasting relatively low 2016 growth rates of 2.1% for Hungary, 2.3% for the Czech Republic and 3.5% for Poland. Impacts Solid growth rates in CE will attract private investment to infrastructure projects, particularly once GDP expands faster in 2017. Infrastructure investment will focus on such traditional sectors as transport and industry rather than financial services in 2016-17. Low borrowing costs and private companies' strong demand for short- and long-term loans will facilitate an upturn in projects in 2017. Given the diverse fiscal and political landscapes across CE, divergence in deals and mixed funding schemes are expected after 2016. CE governments may introduce lending schemes designed to shield new infrastructure projects from financial volatility.

Burundi reform hopes stand at a crossroads

2021 ◽  
Keyword(s):  
Infrastructure Projects ◽  
Content Type ◽  
New Infrastructure

Significance Since taking office last June, Ndayishimiye has taken small steps in this direction, but the progress and outlook remain mixed. Impacts Ndayishimiye’s attempts to mend ties with neighbouring Rwanda may enjoy the most success among his new initiatives. Burundi hopes a planned new rail link with Tanzania can help boost mining exports, but funding the USD1.9bn project may prove challenging. New infrastructure projects will be crucial for Burundi’s economy after years of anaemic growth, now exacerbated by the COVID-19 pandemic.

East Africa infrastructure raises regional tensions

2015 ◽  
Keyword(s):  
East Africa ◽  
Large Scale ◽  
South Sudan ◽  
Land Grabbing ◽  
Infrastructure Projects ◽  
Business Elites ◽  
Content Type ◽  
Northern Kenya ◽  
The Past ◽  
New Infrastructure

Subject Regional infrastructure ambitions. Significance Plans for large-scale regional infrastructure projects have become vehicles for economic cooperation in East Africa over the past several years. However, behind the rhetoric of regional solidarity, such ventures have become a critical arena for power rivalries to play out. Impacts Infrastructure plans are exacerbating local conflicts in northern Kenya and driving new dynamics. Land grabbing is a trend across areas where new infrastructure is meant to be, tying political and business elites to original plans. Despite its ambitions to reduce reliance on Khartoum, South Sudan is not going to be a secure infrastructure partner for some time.

Weak consumption may thwart Slovak growth plans

2016 ◽  
Keyword(s):  
Infrastructure Investment ◽  
Gdp Growth ◽  
Industrial Output ◽  
Short Term ◽  
Fiscal Deficits ◽  
Consumption Growth ◽  
Content Type ◽  
Low Levels ◽  
The Government ◽  
The Eu

Subject The government's latest GDP expectations for 2016-19. Significance On September 19, days before surviving a parliamentary no-confidence vote, the government announced GDP projections for 2016-19, based on improvements in consumption growth and the labour market, where registered unemployment hovers at historically low levels. Despite its weakened position following the recent departure of junior coalition partner Siet, Smer-Social Democracy (SD) is upbeat about the prospects for robust GDP growth in 2016, revising its forecast upwards to 3.6% from 3.2%. Impacts Industrial output, GDP and inflationary pressures may pick up post-2018, as consumers spend more and auto industry investments create jobs. The government may miss its targets in the short term, but fiscal deficits should remain below the EU limit of 3% of GDP in 2016-18. More public-private partnerships, modelled on the Bratislava ring-road, plus EU funding, may support infrastructure investment after 2017.

Haitian stability boosts aid and investment hopes

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Dominican Republic ◽  
Infrastructure Investment ◽  
Content Type ◽  
Caribbean Community ◽  
Investment Plan ◽  
The Caribbean ◽  
The Eu

Subject Aid and development in Haiti. Significance On April 21, the EU announced a new aid package for Haiti. While part of this aid will be directed towards reconstruction projects, some will be allocated to the new government’s ambitious infrastructure investment plan. The scale of this plan means that the administration of President Jovenel Moise will also seek to win funding from other potential donors. Impacts While Moise's government provides some stability and leadership, it remains controversial and any mistakes could quickly trigger protests. Tenders will come under close scrutiny given heightened corruption suspicions in the wake of the regionwide Odebrecht scandal. If successfully funded, improved employment prospects could boost economic growth and relieve migrant pressure on the Dominican Republic. If US funding is reduced, Haiti could look to diversify its sources of aid, particularly within the Caribbean Community.

Slower Chile growth will bring electoral challenges

2019 ◽  
Keyword(s):  
Economic Performance ◽  
Living Standards ◽  
Gdp Growth ◽  
Foreseeable Future ◽  
Content Type ◽  
Lower Middle Class ◽  
External Conditions ◽  
World Economic ◽  
The Caribbean ◽  
Economic Outlook

Subject Chile's economic outlook. Significance On July 23, in an update of its World Economic Outlook, the IMF slashed its forecast for economic growth this year in Latin America and the Caribbean from 1.4% to 0.6%, due principally to a sharp cut for Brazil. By contrast, the reduction for Chile, from 3.4% to 3.2%, was small but may err on the side of optimism. Impacts Dependence on copper remains a key challenge for Chile as regards both GDP growth and fiscal revenues. Slower growth particularly worries the new lower-middle class, eager for further gains in living standards. In the foreseeable future, Chile’s economic performance will likely be constrained by external conditions.

Duterte eyes bold Philippines policy agenda

2016 ◽  
Keyword(s):  
Infrastructure Investment ◽  
Foreign Investor ◽  
Policy Agenda ◽  
Election Campaign ◽  
Liberal Party ◽  
Content Type ◽  
Economic Plan ◽  
Vice Presidency ◽  
Policy Content

Significance On May 12, Duterte's transition team released an eight-point economic plan, following a bravado-fuelled election campaign that was light on policy content and unnerved investors, partly because key personnel in the administration remained unknown. Impacts Liberal Party defections will strengthen Duterte's congressional influence, and potentially weaken opposition politics. However, new PDP-Laban members could later desert Duterte. Duterte's infrastructure investment and pro-foreign investor reform plans face bottlenecks. A Ferdinand 'Bongbong' Marcos vice presidency would strengthen Duterte further, and reduce the chance of any possible impeachment effort.

Eastern EU must now scrutinise Chinese investment more

2019 ◽  
Keyword(s):  
Eastern Europe ◽  
Infrastructure Investment ◽  
Belt And Road Initiative ◽  
Content Type ◽  
Chinese Investment ◽  
Central Eastern Europe ◽  
Chinese Companies ◽  
Investment Opportunities ◽  
Belt And Road ◽  
Central Eastern

Subject Shifts in Chinese investment in Central-Eastern Europe. Significance Initial enthusiasm for China’s Belt and Road Initiative (BRI) in Central-Eastern Europe (CEE), driven by the region’s often critical need for infrastructure investment, has ebbed. Impacts Beijing’s interests will decide which investment opportunities are pursued in CEE. From the CEE side, China will not always receive favourable investment terms and EU cohesion is not necessarily under threat. Scepticism about the soundness of Chinese companies will rise after a number of well-publicised debt defaults.

Infrastructure deficit will mar Chile competitiveness

2017 ◽  
Keyword(s):  
Income Distribution ◽  
Public Private Partnerships ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Public Infrastructure ◽  
Content Type ◽  
Social Segregation ◽  
Unequal Income Distribution ◽  
Lock In

Subject Public infrastructure weaknesses. Significance It is increasingly apparent that public infrastructure in Chile is lagging behind the country’s needs, undermining the competitiveness of the exports that drive its economy, hampering the development of sectors such as agriculture and contributing to social segregation. With fiscal resources constrained by sluggish GDP growth, attention has again turned to public-private partnerships (PPPs) as a possible solution to infrastructure gaps. Impacts Infrastructure gaps help lock in Chile’s highly unequal income distribution. According to the Chilean Chamber of Construction, a 10.0% increase in infrastructure investment would boost GDP by 1.15%. Narrowing the country’s infrastructure gaps will be a key challenge for the new administration that takes office in March 2018.

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