Evolving Debt Vulnerabilities in Least Developed Countries and Other Low-Income Countries
Organized by:
IMF and UN-OHRLLS
Summary:
This event will highlight new work by the IMF on macroeconomic developments in low income developing countries, from which lessons for LDCs will be drawn. It will spotlight trends across LDCs and LICs in recent years, contrasting key features of the current situation with the period prior to the 2014 decline in commodity prices. Particular attention will be given to the evolution of fiscal positions and public debt levels, including analysis of the drivers of debt accumulation and the current severity of debt vulnerabilities. It would highlight how recent developments have affected countries’ efforts to date and ability in future to achieve the SDGs. To promote a lively debate, it will bring contributions from different perspectives. Key topics for discussion may include:
- How to ensure that fiscal space is used for development/achieving the SDGs, and public investment in critical infrastructure is sufficiently prioritized/protected?
- How can commodity exporters and other countries subject to external shocks better insulate themselves to ensure a smoother process of development going forward?
- How difficult is the debt situation of LDCs, what will it take for it to stabilize or improve, and how can countries facing elevated risk of debt distress and therefore tight constraints on prudent borrowing nevertheless make progress towards their development?
Related information:
Contact:
Erica Carroll, ecarroll@imf.org, 202-294-3899