{
  "title": "Public Investment Efficiency, Growth and Debt Sustainability in Guatemala",
  "publication": "Selected Issues Papers, September 25, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/25/public-investment-efficiency-growth-and-debt-sustainability-in-guatemala-570691",
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  "summary": "Despite having moderate levels of public debt sovereign spreads, Guatemala is a country with limited levels of public investment efficiency (PIE) that actively constrain much needed infrastructure and social investment.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- Author: Andrea Paloschi\n- Publication date: September 25, 2025\n- Series: Selected Issues Paper No. 2025/129\n- Pages: 12\n- Issue: 129\n- Volume: 2025\n- DOI: https://doi.org/10.5089/9798229025805.018\n- Stock No: SIPEA2025129\n- ISBN: 9798229025805\n- ISSN: 2958-7875"
    },
    {
      "heading": "Main findings",
      "content": "- Guatemala has limited levels of public investment efficiency (PIE) that constrain infrastructure and social investment.\n- Improving PIE leads to beneficial macroeconomic effects across real, fiscal, and external indicators.\n- Higher PIE would allow Guatemala to sustain:\n  - higher levels of external debt,\n  - weaker fiscal balances,\n  - weaker current account balances,\n  without worsening sovereign risk premia.\n- The aggregate effect of higher PIE amplifies welfare benefits for households through higher private consumption."
    },
    {
      "heading": "Analytical focus and methodology (as described)",
      "content": "- The Selected Issues Paper (SIP) analyzes the effects of improving PIE on key real, fiscal, and external macroeconomic indicators.\n- The analysis links public investment efficiency to debt sustainability and sovereign risk premia outcomes."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Strengthening public investment efficiency is a policy priority to:\n  - enhance infrastructure and social investment outcomes,\n  - increase room for external borrowing without adverse effects on sovereign risk premia,\n  - permit temporarily weaker fiscal and current account balances while supporting growth,\n  - boost household welfare via higher private consumption."
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Consumption, Debt sustainability, Expenditure, External debt, National accounts, Public debt, Public investment spending\n- Keywords: Consumption, Debt sustainability, debt to GDP, GDP gain, PIE increment, Public Debt, Public Investment Efficiency, Public investment spending, social investment, Sovereign Risk, Western Hemisphere department\n\nSource: Public Investment Efficiency, Growth and Debt Sustainability in Guatemala, Selected Issues Paper No. 2025/129, Andrea Paloschi, September 25, 2025.\n\n---\n\n Content in this bundle\n\n- Public Investment Efficiency, Growth and Debt Sustainability in Guatemala\n  - Public Investment Efficiency, Growth and Debt Sustainability in Guatemala (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Public Investment Efficiency, Growth and Debt Sustainability in Guatemala (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/09/25/public-investment-efficiency-growth-and-debt-sustainability-in-guatemala-570691"
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    "Authors: Andrea Paloschi",
    "Published: September 25, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229025805.018",
    "Author: Andrea Paloschi",
    "Publication date: September 25, 2025",
    "Series: Selected Issues Paper No. 2025/129",
    "Pages: 12",
    "Issue: 129",
    "Volume: 2025",
    "DOI: https://doi.org/10.5089/9798229025805.018",
    "Stock No: SIPEA2025129",
    "ISBN: 9798229025805",
    "ISSN: 2958-7875",
    "Guatemala has limited levels of public investment efficiency (PIE) that constrain infrastructure and social investment.",
    "Improving PIE leads to beneficial macroeconomic effects across real, fiscal, and external indicators.",
    "Higher PIE would allow Guatemala to sustain:",
    "The aggregate effect of higher PIE amplifies welfare benefits for households through higher private consumption.",
    "The Selected Issues Paper (SIP) analyzes the effects of improving PIE on key real, fiscal, and external macroeconomic indicators.",
    "The analysis links public investment efficiency to debt sustainability and sovereign risk premia outcomes.",
    "Strengthening public investment efficiency is a policy priority to:",
    "Subject: Consumption, Debt sustainability, Expenditure, External debt, National accounts, Public debt, Public investment spending",
    "Keywords: Consumption, Debt sustainability, debt to GDP, GDP gain, PIE increment, Public Debt, Public Investment Efficiency, Public investment spending, social investment, Sovereign Risk, Western Hemisphere department",
    "**Public Investment Efficiency, Growth and Debt Sustainability in Guatemala**"
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