ASEAN+3 member economies have rolled out fiscal stimulus measures to protect both lives and livelihoods against the COVID-19 pandemic. Some economies have included infrastructure projects in the stimulus package to boost the recovery, while others have delayed less urgent infrastructure projects to reallocate the resources toward more urgent support programs.
With an economic slack, public infrastructure investments can play a crucial role in the post-pandemic economic recovery. However, narrowed fiscal policy space during the pandemic may hinder the authorities from resuming and increasing infrastructure spending.
In this regard, it is vital to understand the impact of infrastructure investments on the economy and debt dynamics for better policy considerations in both aspects. This note assesses the infrastructure stocks and investments, reviews the role of infrastructure in economic growth and development, analyzes the effects of infrastructure investments on growth and debt, and discusses the policy options.