## Macroeconomic Developments and Prospects In Low-Income Countries—2021

_Policy Papers, March 30, 2021_

## Source details

**Canonical URL:** [Macroeconomic Developments and Prospects In Low-Income Countries—2021](https://www.imf.org/en/publications/policy-papers/issues/2021/03/30/macroeconomic-developments-and-prospects-in-low-income-countries-2021-50312)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2021/03/30/macroeconomic-developments-and-prospects-in-low-income-countries-2021-50312/index.md)
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## Bibliographic details
- Published: March 30, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513575858.007

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### Scope and definition
- Sixth paper in a series examining macroeconomic developments and prospects in low-income countries (LICs).
- LICs are defined in this report as the countries eligible to PRGT facilities (69 countries).
- Page count: 47.

### Recent macroeconomic developments and trends across LICs
- The first section discusses recent macroeconomic developments and trends across LICs.
- The analysis covers themes including: Climate finance, COVID-19, Environment, Financial institutions, Health, Income, Monetary policy, Multilateral development institutions, National accounts, Political economy.

### Estimated financing needs up to 2025
- The second section estimates LICs’ financing needs up to 2025 to resume and accelerate income convergence with advanced economies (AEs).
- Financing needs are estimated by:
  - Calculating additional financing that would enable LICs to step up spending response to COVID, including vaccination needs.
  - Ensuring rebuilding or maintaining external buffers to enhance resilience.
  - Assessing financing required to allow LICs to accelerate convergence with AEs.

### Financing options and domestic reforms
- The paper discusses a mix of financing options:
  - Concessional financing from the international financial institutions.
  - Grants and loans from bilateral donors.
  - Private financing and debt operations.
- Domestic reforms within LICs are highlighted as a key component to:
  - Foster growth.
  - Enhance private investment.
  - Raise public revenues.
  - Increase efficiency of spending.

### Keywords and geographic focus
- Keywords include: Caribbean, Climate finance, COVID-19, downside scenario, emergency financing from the IMF, financing needs, financing support, Global, Income, LIC financing, Multilateral development institutions.
- Subject focus spans climate finance, COVID-19, and other macroeconomic and policy areas relevant to LICs.

*International Monetary Fund. "Macroeconomic Developments and Prospects In Low-Income Countries—2021", Policy Papers 2021, 020 (2021).*

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- **Policy Paper**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2021/03/30/macroeconomic-developments-and-prospects-in-low-income-countries-2021-50312_