Investment in Emerging Market and Developing Economy Regions : Trends, Prospects, and Policy Options (English)
16 March 2023
Investment growth slowed in the past decade in all emerging market and developing economy (EMDE) regions, but most sharply in East Asia and the Pacific (EAP) and the Middle East and North Africa (MNA). Yet, pressing investment needs remain. All regions need to boost infrastructure investment and investment in mitigating and adapting to climate change and reversing pandemic-related learning losses. In other areas, investment needs vary by region. They include accommodating high and rising urbanization (EAP, Latin America and the Caribbean [LAC], South Asia [SAR]); boosting productivity, especially in sectors that employ large proportions of the population (for example, agriculture in Sub-Saharan Africa [SSA]); rebuilding after conflict (Europe and Central Asia [ECA], MNA, SSA); improving trade linkages (LAC); and preparing for future public health crises. Across all EMDE regions, policy priorities include strengthening the efficiency of public investment, boosting private investment (especially in ECA, LAC, and MNA), and expanding the availability of finance for investment (especially in SSA, LAC).