Macroeconomic Developments and Prospects in Low-income Development Countries

Event Type
Report Presentation

Location / Date
Bonn, 16.05.2018

German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

International Monetary Funds annual report on Macroeconomic Development and Prospects in Low-Income Development Countries – 2018 was presented by two of the authors, Hans Weisfeld and Wes McGrew, Deputy Division Chiefs in the IMF’s Strategy, Policy, and Review Department. It is the fourth in an annual series of reports that look at trends and socioeconomic indicators of Low Income Developing Countries (LIDCs). Jürgen Kaiser, Coordinator of erlassjahr.de / Jubilee Germany,  commented on the report afterwards.

A key messages of the report is that public debt and debt service levels have risen leading to increased debt vulnerabilities in many LIDCs. Countries now at high risk of debt distress face a tight fiscal envelope with limited borrowing space. The report stresses that creditors need to exercise due diligence in their lending decisions and to develop modalities for engaging in debt restructuring operations. Lenders should consider the benefits of subscribing to principles for sustainable lending and borrowing, such as those being championed by the G-20, and of working with existing international fora for creditor information sharing and coordination.

Other key issues of the report include:

• Low growth rates: Growth improved broadly across LIDCs in 2017. However, output growth in commodity exporters continues to lag behind levels achieved in 2010-14.  
• Weakening of fiscal positions: There has been a broad-based weakening of fiscal positions in LIDCs in recent years. Increased fiscal pressures contributed to rising stress in financial sectors in many LIDCs.  
• Increased debt levels: Debt burdens and vulnerabilities have risen significantly since 2013 in many LIDCs, reflecting a mix of factors including exogenous shocks and loose fiscal policies.  
• Changes in debt structures: The composition of public debt in LIDCs continues to shift from traditional sources towards non-Paris Club bilateral lenders, commercial external debt, and domestic debt.

Programme

Welcome

• Peter Wolff, Co-Chair, Programme Transformation of Social and Economic Systems, German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

Presentation

• Hans Weisfeld, IMF
• Wes McGrew, IMF

Comments

• Jürgen Kaiser, Coordinator of erlassjahr.de / Jubilee Germany

Q&A with the audience
Reception

Hinweis

Während unserer Veranstaltungen werden z.T. Foto- und/oder Filmaufnahmen gemacht, die für Zwecke der Veranstaltungsberichterstattung und allgemeinen Öffentlichkeitsarbeit in verschiedenen Medien veröffentlicht werden. Sie haben jederzeit das Recht, die Foto- oder Videograf*innen darauf hinzuweisen, dass Sie nicht aufgenommen werden möchten. / During our events photos and/or videos may be taken which may be published in various media for the purposes of documentation and PR activities. You have the right at any time to point out to the photographer or videographer that you do not want to be photographed or filmed.