Macroeconomic Research in Low-income Countries: Advances Made in Five Key Areas Through a DFID-IMF Collaboration
Despite strong economic growth since 2000, many low-income countries still face macroeconomic challenges, even prior to COVID-19
Abstract
Despite strong economic growth since 2000, many low-income countries (LICs) still face numerous macroeconomic challenges, even prior to the COVID-19 pandemic. Despite the deceleration in real GDP growth during the 2008 global financial crisis, LICs on average saw 4.5 percent of real GDP growth during 2000 to 2014, making progress in economic convergence toward higher-income countries. However, the commodity price collapse in 2014–15 hit many commodity-exporting LICs and highlighted their vulnerabilities due to the limited extent of economic diversification. Furthermore, LICs are currently facing a crisis like no other—COVID-19, which requires careful policymaking to save lives and livelihoods in LICs, informed by policy debate and thoughtful research tailored to the COVID-19 situation. There are also other challenges beyond COVID-19, such as climate change, high levels of public debt burdens, and persistent structural issues.
This research was funded by the former UK Department for International Development (DFID), which merged with the Foreign and Commonwealth Office (FCO) to become the Foreign, Commonwealth & Development Office (FCDO) in 2020.
Citation
Hites Ahir, Hendre Garbers, Mattia Coppo, Giovanni Melina, Futoshi Narita, Filiz D Unsal, Vivian Malta, Xin Tang, Daniel Gurara, Luis-Felipe Zanna, Linda G. Venable, Kangni R Kpodar and Chris Papageorgiou (2021) Macroeconomic Research in Low-income Countries: Advances Made in Five Key Areas Through a DFID-IMF Collaboration. International Monetary Fund Departmental Paper No 2021/006