## Macroeconomic Developments and Prospects in Low-Income Developing Countries—2019

_Policy Papers, December 11, 2019_

## Source details

**Canonical URL:** [Macroeconomic Developments and Prospects in Low-Income Developing Countries—2019](https://www.imf.org/en/publications/policy-papers/issues/2019/12/11/macroeconomic-developments-and-prospects-in-low-income-developing-countries-2019-48872)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2019/12/11/macroeconomic-developments-and-prospects-in-low-income-developing-countries-2019-48872/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2019/12/11/macroeconomic-developments-and-prospects-in-low-income-developing-countries-2019-48872/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2019/12/11/macroeconomic-developments-and-prospects-in-low-income-developing-countries-2019-48872/bundle-manifest.json)

## Bibliographic details
- Published: December 11, 2019
- Series: Policy Papers

---

### Overview
- This paper is the fifth in a series that examines macroeconomic developments and prospects in low-income developing countries (LIDCs).
- LIDCs are a group of 59 IMF member countries primarily defined by income per capita below a threshold level.
- LIDCs contain one fifth of the world’s population—1.5 billion people—but account for only 4 percent of global output.

### Key findings and statistics
- Number of LIDCs: 59
- Population share: one fifth of the world’s population—1.5 billion people
- Global output share: 4 percent of global output
- Pages: 72
- Volume: 2019
- Issue: 039
- Series: Policy Paper No. 2019/039
- Stock No: PPEA2019039
- ISBN: 9781513522739
- ISSN: 2663-3493

### Chapter summaries and substantive themes
- Chapter 1 — Macroeconomic developments and growth drivers:
  - Discusses recent macroeconomic developments and trends across LIDCs.
  - Uses growth decompositions to explore the key drivers of growth performance in LIDCs.
- Chapter 2 — Value-added tax (VAT) implementation:
  - Examines the challenges faced by LIDCs in implementing a value-added tax system.
  - Treats VAT as a key component of a strong national tax system.
- Chapter 3 — Financial safety nets:
  - Discusses how financial safety nets can be appropriately tailored to the specific needs of LIDCs.
  - Emphasizes that an effective safety net is important for ensuring financial stability and underpinning public confidence in the financial system, thereby promoting financial intermediation.

### Policy themes and recommendations (as presented)
- Strengthen tax systems in LIDCs with emphasis on implementing or improving value-added tax systems.
- Tailor financial safety nets to LIDC-specific circumstances to support financial stability and public confidence in the financial system and to promote financial intermediation.
- Analyze and address growth performance by decomposing growth drivers to inform policy prioritization.

*International Monetary Fund. "Macroeconomic Developments and Prospects in Low-Income Developing Countries—2019", Policy Papers 2019, 039 (2019).*

---

## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2019/ppea2019039.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2019/ppea2019039.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/policy-papers/issues/2019/12/11/macroeconomic-developments-and-prospects-in-low-income-developing-countries-2019-48872_