## Macroeconomic Developments and Prospects For Low-Income Countries—2024

_Policy Papers, April 2, 2024_

## Source details

**Canonical URL:** [Macroeconomic Developments and Prospects For Low-Income Countries—2024](https://www.imf.org/en/publications/policy-papers/issues/2024/04/02/macroeconomic-developments-and-prospects-for-low-income-countries-2024-547064)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2024/04/02/macroeconomic-developments-and-prospects-for-low-income-countries-2024-547064/index.md)
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## Bibliographic details
- Published: April 2, 2024
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798400272400.007

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### Outlook and key findings
- The outlook for Low-Income Countries (LICs) is gradually improving, but LICs face persistent macroeconomic vulnerabilities, including liquidity challenges due to high debt service.
- There is significant heterogeneity among LICs:
  - The poorest and most fragile countries have faced deep scarring from the pandemic.
  - LICs with diversified economies and Frontier Markets are faring better.
- Achieving inclusive growth and building resilience are essential for LICs to converge with more advanced economies and meet the Sustainable Development Goals (SDGs).
- Building resilience will be critical in the context of a more shock-prone world.

### Policy implications and recommended domestic actions
- Decisive domestic actions are required, including:
  - Expanding Social Safety Nets (SSNs).
  - Better targeting Social Safety Nets (SSNs).
- Emphasis on policies that promote inclusive growth toward the SDGs.

### External support needs
- Substantial external support is necessary, including:
  - Adequate financing.
  - Policy advice.
  - Capacity development.
  - Where needed, debt relief.
- Addressing liquidity challenges tied to high debt service is a priority.

### IMF role and response
- The Fund is further stepping up its support through:
  - Targeted policy advice.
  - Capacity building.
  - Financing.

*Source: Macroeconomic Developments and Prospects For Low-Income Countries—2024, April 2, 2024.*

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## Content in this bundle

- **Policy Paper**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2024/04/02/macroeconomic-developments-and-prospects-for-low-income-countries-2024-547064_