Planning and implementation of public investment projects in the face of unstable macroeconomic conditions

Abstract

Purpose – The aim of the article is to draw attention to possible limitations and potential difficulties related to the implementation of public investment projects in the face of crisis phenomena and in particular the possible impact of macroeconomic factors on public investments. Research method – During the research, the method of critical analysis of the literature as well as analytical and descriptive methods were used in relation to the source data obtained during the empirical research, which allowed determining the impact of changes in macroeconomic factors on the planning and implementation of public investments. Results – Theoretical and empirical studies prove that macroeconomic instability has a significant impact on the course of investment processes in the public sector. The increase in inflation and interest rates of central banks has become a major threat to development processes; it may limit investment activity and reduce the effectiveness of public spending. Originality / value / implications / recommendations – The article discusses the current issues of planning and implementing investments in the face of changes in macroeconomic factors in crisis conditions. The recognized instability of investment processes in the public sector requires a detailed analysis of the current conditions and the impact of potential threats on long‑term economic development. The research shows that there is a need for a thorough and extensive analysis of macroeconomic conditions and their potential influence on the conditions of implementation, including the financing of public investment projects in the future.