Departmental Papers

Macroeconomic Research in Low-income Countries: Advances Made in Five Key Areas Through a DFID-IMF Collaboration

By 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, Chris Papageorgiou

March 24, 2021

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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. Macroeconomic Research in Low-income Countries: Advances Made in Five Key Areas Through a DFID-IMF Collaboration, (USA: International Monetary Fund, 2021) accessed December 21, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Debt, Economic growth, Expenditure, Fiscal policy, Gender, Gender inequality, Income, Income inequality, Investment policies, Low income countries, Monetary policy, National accounts, Public investment spending

Keywords: Credit entry, DFID-IMF monetary policy agenda, DP, DPPP, Exchange rate, Gender inequality, Global, IMF country team, IMF economist, IMF gender portal, Income, Income inequality, Interest rate, Investments, LIC economy, LICS face, Low-income-countries, Monetary policy, Monetary policy formulation, Public investment spending, Rate of return, Sub-Saharan Africa, Transmission mechanism

Publication Details

  • Pages:

    77

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Departmental Paper No 2021/006

  • Stock No:

    MRLICSEA

  • ISBN:

    9781513566603

  • ISSN:

    2616-5333

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