Development Committee: The Managing Director's Written Statement

Policy Papers, April 23, 2026

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Development Committee: The Managing Director's Written Statement

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Bibliographic details

• Published: April 23, 2026
• Series: Policy Papers
• DOI: https://doi.org/10.5089/9798229043885.007

Global spillovers and overall assessment

• The world faces the spillovers from the war in the Middle East.
• Economic effects are described as global and uneven, hitting the poorest and most vulnerable countries the hardest.
• This comes at a time when policy space has been eroded and geopolitical tensions have been increasing.

Transmission channels to Low-Income Developing Countries (LIDCs)

• Spillovers to Low-Income Developing Countries (LIDCs) will transmit through:
  • supply disruptions
  • higher commodity prices
  • second-round effects on inflation and expectations
  • tighter global financial conditions
  • exchange rate pressures
  • reduced remittances from members of the Gulf Cooperation Council (GCC)

Policy guidance and recommended approach

• The appropriate policy response depends on how the shock propagates through the domestic economy, calling for pragmatism and agility, supported by credible policy frameworks.
• In LIDCs, near term policies should be anchored in credible frameworks.
• Concerted efforts are key to enhance resilience and growth potential.
• Domestic structural reforms, including building strong institutions, have an important role in the medium-term to attract stronger FDI inflows and create jobs.

Role of the international community and the IMF

• Robust support from the international community will be essential—especially for the most vulnerable LIDCs and fragile and conflict-affected states (FCS).
• The IMF stands ready to deploy all its tools to assist the membership—supporting sound policies, helping ensure this new test does not derail key medium-term priorities, and providing balance of payments financing where needed.

Metadata and publication identifiers (as stated in the source)

• Publication date: April 23, 2026
• Pages: 7
• Volume: 2026
• Issue: 010
• Series: Policy Paper No. 2026/010
• DOI: https://doi.org/10.5089/9798229043885.007
• Stock No: PPEA2026010
• ISBN: 9798229043885
• ISSN: 2663-3493
• Subject keywords: Central bank autonomy, Central banks, Inflation, Macrostructural analysis, Prices, Public debt, Structural reforms
• Geographic/Topical keywords: Caribbean, Middle East, Middle East and Central Asia, Global

International Monetary Fund. "Development Committee: The Managing Director's Written Statement", April 23, 2026.

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