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IMF:Low-income countries to need to deploy around $450 bln.

The Executive Board of the International Monetary Fund (IMF) discussed an IMF staff paper on recent economic developments and prospects in low-income countries (LICs), which seen to need to deploy a total of 450 billion dollars in the next three years, the Fund announced in a statement. 

NEWS IN ENGLISH 01.04.2021, 16:00
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IMF:Low-income countries to need to deploy around $450 bln.
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Responding to requests from the International Monetary and Financial Committee (IMFC), the Fund’s policy-guiding ministerial body, and the Group of 20, the paper focuses on estimating financing needs over the period 2021-25, and on sustainable financing options to cover these needs, it said.


"Going forward, the IMF estimates that low-income countries would need to deploy around $200 billion up to 2025 to step up response to the pandemic and an additional $250 bn to accelerate their income convergence with advanced economies. The paper defines LICs as those countries eligible for Poverty Reduction and Growth Trust facilities (69 countries in Africa, Asia, and Latin America)" read the statement and added:


"LICs have been significantly affected by the Covid-19 pandemic and the associated health and economic crises. They entered this period with limited policy space. Real annual GDP growth in 2020, therefore, declined dramatically to 0.3 percent (from above 5 percent in the previous three years).


"Looking ahead, the pandemic is set to have long-lasting effects on LICs, leading to higher debt levels and within-country inequality and poverty, y and delaying income convergence with advanced economies. In addition, LICs will have to respond to pre-existing challenges, such as climate change adaptation, and harness new opportunities such as digitalization.
 

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