Hites Ahir, Hendre Garbers, Mattia Coppo, Mr. Giovanni Melina, Mr. Futoshi Narita, Ms. Filiz D Unsal, Vivian Malta, Xin Tang, Daniel Gurara, Luis-Felipe Zanna, Linda G. Venable, Mr. Kangni R Kpodar, and Mr. Chris Papageorgiou
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.
Hites Ahir, Mattia Coppo, Hendre Garbers, Vivian Malta, Xin Tang, Daniel Gurara, Luis-Felipe Zanna, and Linda G. Venable
technical assistance—with the objectives of developing the ability to analyze and forecast inflation, strengthening the monetary policy formulation process, and improving the management and recording of central bank liquidity processes. Such assistance has been provided in several countries, including Ghana, India, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, and Vietnam.
This uptake of the DFID-IMFmonetarypolicyagenda has helped improve countries’ monetary policy analysis, formulation, and communications. For example, in Kenya, the DFID-IMF collaboration has