## Development Committee: The Managing Director's Written Statement October 2020

_Policy Papers, October 16, 2020_

## Source details

**Canonical URL:** [Development Committee: The Managing Director's Written Statement October 2020](https://www.imf.org/en/publications/policy-papers/issues/2020/10/16/development-committee-the-managing-director-s-written-statement-october-2020-49821)

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## Bibliographic details
- Published: October 16, 2020
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513559094.007

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### Overview
- The global economy is embarking on a lengthy path to recovery with modest growth expected for 2021, after a severe contraction this year.
- The global forecast is subject to unusually large risks.
- Emerging markets and developing economies face an uphill battle.
- Low-income developing countries are in an especially vulnerable position and risk a persistent and significant deterioration in development prospects.
- Controlling the pandemic and cushioning the impact on the economy are key.

### Key findings
- The global economy: lengthy path to recovery; modest growth expected for 2021 following a severe contraction in 2020.
- Forecast risks: unusually large downside and uncertainty surrounding the global forecast.
- Emerging markets and developing economies (EMDEs): face an uphill battle to recover.
- Low-income developing countries (LIDCs): especially vulnerable, risk persistent and significant deterioration in development prospects.
- Policy emphasis: controlling the pandemic and cushioning economic impact are critical priorities.

### Policy recommendations and priorities
- LIDCs should adopt targeted containment measures.
- LIDCs should strictly prioritize spending.
- LIDCs should refrain from policies that could create long term damage.
- Multilateral cooperation and extensive support from the international community are indispensable.
- Targeted surveillance and capacity development will tackle new policy challenges and react nimbly to the needs of the membership including fragile and small states.

### IMF actions and roles described
- The IMF has helped EMDEs through emergency lending and debt service relief.
- The IMF will provide targeted surveillance and capacity development to address new policy challenges and support fragile and small states.

### Subjects and keywords (as provided)
- Subjects: Asset and liability management, COVID-19, Debt burden, Debt relief, Debt service, Debt sustainability, Emerging and frontier financial markets, External debt, Financial markets, Health
- Keywords: capacity development, COVID-19, Debt burden, Debt relief, Debt sustainability, Emerging and frontier financial markets, Global, health crisis, IMF support, IMF surveillance, IMF-World Bank debt sustainability assessment, international community, lending toolkit, Policy decision, policy response, PP, world economy

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## Content in this bundle

- **Policy Paper**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2020/10/16/development-committee-the-managing-director-s-written-statement-october-2020-49821_