IN ORDER TO COVER THE TRANSPORT SECTOR’S DEMAND FOR THE PERIOD 2016-2030, THERE NEEDS TO BE AN INVESTMENT OF AROUND 2.2% OF THE GDP ON INFRASTRUCTURE, BUT THE CENTRAL AMERICAN COUNTRIES ALLOCATE, ON AVERAGE, ONLY 1.8% OF THEIR GDP.
According to the study “Logros y desafíos de la integración centroamerican: aportes de la CEPAL” (Achievements and challenges for central-american integration: ECLAC Contributions), in between 2008 and 2015, Panama was the first country that reported a major average investment on transport infrastructure, 3.68% of their GDP. The second was Honduras with 2.21% of their GDP and following was Nicaragua with 1.99%.
The data also indicates an increase in investment in the Dominican Republic to 1.32% of their GDP, in Costa Rica an increase to 1.25%, to 1.23% in Guatemala and in El Salvador to 0.93%.
The document notes that in order to face the expected demand for the 2016-2030 period, the countries should invest annually an average of 2.2% of their GDP on transport infrastructure, including expenses on maintenance and routine reparations.
Due to the large deficit of infrastructure in the region, the current investments are insufficient to expand the capacity and ensure the maintenance and upgrade of the roads incorporating the new standards for design and security that will be able to improve the quality and territorial coverage of the services.
It is worrying the lack of investment to improve the connectivity throughout the territory, especially on rural areas where the services can be inefficient and insecure due to the limited infrastructure available.
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Information from CentralAmericaData.com