GLOBAL – Low-Income Developing Countries (LIDC) are expected to record average annual growth of some five per cent in 2018-2019, a new IMF policy paper has shown.
The LIDC are a group of 59 IMF member countries primarily defined by income per capita level below a certain threshold (set at $2,700 in 2016).
“The LIDCs are expected to record average annual growth of some five per cent in 2018-2019, a reasonably robust performance against the backdrop of loss of momentum in the global economy,” the Washington-based fund said.
It noted that experiences varied markedly within the group, with countries in fragile situations typically recording weaker-than-average performance.
Oil dependent economies, including Nigeria, will however continue to fare less than countries reliant on other export sectors, a pattern in place since the drop of oil prices in 2014.
According to the IMF, the rapid growth in public debt recorded between 2013 and 2017 slowed significantly in 2018-19, although the general trend was still an upward drift in debt burden.
The IMF directors noted that public debt vulnerability remained a serious cause of concern in many LIDCs, with more than two-fifths of countries assessed to be at high risk of, or already in, debt distress.
They emphasised the importance of strengthening debt management capacity and improving data quality and transparency, to be supported by implementation of the joint bank-fund multi-pronged approach to tackle debt vulnerability.