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IMF: developing economies under pressure

Reporting by Africanews (français)Read the original at fr.africanews.com

Executive Summary

Global economic growth is projected at 3.1% while global inflation is expected to reach 4.7%, according to the latest World Economic Outlook from the IMF. Developing economies face increased challenges due to geopolitical tensions, rising energy costs, and extreme weather events. More than 60% of low-income countries are either in debt or face a high risk of a debt crisis, which constrains their budgetary leeway for public services and development investments.
Energy price fluctuations impact transportation and various goods, fueling inflation and weakening households. These financial difficulties are compounded by the effects of climate disasters, disproportionately affecting nations with limited resources for adaptation. While artificial intelligence and new technologies offer growth prospects for specific economies involved in technology production and supply chains, many developing nations lack the necessary digital infrastructure and skills to capitalize on this dynamic. There is a recognized need to strengthen digital connectivity to facilitate integration into global value chains. Economic officials are balancing the need for budget discipline, debt control, and maintaining social protection systems while simultaneously investing in digital infrastructure and training.

Facts Only

* Global economic growth is expected to be 3.1%.
* Global inflation is expected to reach 4.7%.
* More than 60% of low-income countries are already in debt or face a high risk of a debt crisis.
* Fluctuations in oil and energy prices affect the costs of transport, fuels, and many goods and services.
* Extreme weather events affect countries with limited resources to finance climate change adaptation.
* The development of artificial intelligence and new technologies benefits countries producing technology and participating in AI supply chains.
* Many developing economies lack the digital infrastructure, specialized skills, and investment capacity to exploit technological innovations fully.
* A priority is strengthening digital connectivity to reduce the gap for vulnerable economies.
* Economic strategy focuses on controlling public spending and debt while preserving social protection systems.

Full Take

The narrative presents a sharp dichotomy between technological opportunity and structural vulnerability. The uneven distribution of AI-driven growth highlights a systemic inequality where resource endowments dictate access to future benefits, regardless of innovation potential. This dynamic suggests that the primary constraint for many developing economies is not technological capability itself, but infrastructural deficits—specifically digital connectivity and investment capacity—which act as bottlenecks preventing them from entering modern value chains. The focus on balancing fiscal constraints with social protection introduces a critical tension: austerity measures risk eroding the social safety nets precisely when vulnerable populations are most exposed to external shocks like energy volatility and climate disaster. The call for investing in digital infrastructure, framed as a path to growth, must be scrutinized to ensure it serves equitable development rather than simply reinforcing existing power structures. What underlying assumptions about the relationship between debt, climate vulnerability, and technological diffusion are being implicitly accepted by policymakers? How can policy design shift from merely managing immediate crises to fundamentally restructuring the conditions that allow for inclusive participation in global technological shifts?

From the original · Africanews (français)

digital economy Global economic growth is expected to be 3.1%, while global inflation will reach 4.7%, according to the latest World Economic Outlook from the International Monetary Fund (IMF), published on Tuesday. In a context marked by geopolitical tensions, rising energy costs, and the intensification of extreme weather events, developing economies are facing growing challenges.

Read the full story at fr.africanews.com

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