Financing can boost low-income Countries’ resilience

Low-income countries face multiple economic challenges, including rapid inflation, food insecurity, costly borrowing, and mounting debt, heightened by shocks from the pandemic and Russia’s war in Ukraine. As a result, the IMF has revised down its growth projections for low-income countries, where per capita income growth is falling further behind the rates needed to catch up with advanced economies. This threatens to reverse a decades-long trend of steadily converging living standards. To boost economic growth and put them back on a path to income convergence with advanced economies, we estimate that low-income countries need an additional US$440 billion of financing…