As one skims through the recovery pattern of the recovery from the recent American recession. Accounting services for infrastructure sector growing and it is quite evident that progress economy has made is relatively slower than the progress from previous depressions. Growth is halved and investment confidence to invest to stimulate the economy is still relatively low.
Importance of Infrastructure Sector:
Many economists believe growth in economy can be driven by investment in infrastructure. Investment in infrastructure first of all creates demand then provides capacity for the other business sectors to rapidly growth.
Infrastructure not only excels the current economy, but also enables a platform for the economy to excel in the future. Capacity building enables businesses to expand upon and improve.
Infrastructure sector contributes majorly in the gross domestic product growth.
There has been a significant gap in infrastructure sector which has been unable to be filled by government. This is probably the reason; private sector can contribute a lot to fill in those gaps. This will stimulate economic growth resulting in a better consumer and investor confidence and eventually reviving the economy from the recessions.
Once the private sector starts to pump in investment in to the infrastructure economy. It is expected that a large number of job is likely to be added in the economy. Job addition is always directly related to the improving the living standard of an individual.
This is a moment of crisis as FED is unable to raise the monetary interest rate in United States of America. Liquidating economy for too long can have drastic impact because it leaves central bank no leverage to turn to if another economic crisis hits the economy. Since the economy has been injected in with money, now target of the economy has to be at the right areas. Government should provide tax incentives for the investors to invest in to the infrastructure sector.
These tax credits and deductions will attract the investment in to the right areas rather than the liquidation being wasted on the unnecessary aspects of economy which are unless from growth perspective. Monetary policy has always to be accompanied by the fiscal policy and economic legislation for the monetary policy to actively resolve the identified problem.
Since there is a phenomenal demand for the infrastructure sector, private companies and investors should look in this opportunity and try to extract maximum benefit out and driving the similar benefit into the other sectors of the economy.
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