The global economic slowdown projected by the International Monetary Fund, IMF, in the short to medium term is expected to mount pressures on developing and low income countries such as Nigeria, with worsening debt burdens and without support from the international community.
Giving these indications Tuesday at the on-going Spring Meetings of the World Bank and the IMF in Washington DC, United States of America, Tobias Andrian, Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department, called for concrete steps by emerging economies that will make the financial stability process operate faster, and in a more transparent way this year
Speaking on 2023 Global Financial Stability Report Andrian said: “The global economic growth is expected to be lower than earlier projected this year, signaling potential economic downturn.
“What we’re looking for is concrete steps by emerging economies that will make the process operate faster, and in a more transparent way. And something that debtor countries can look at and understand more clearly on how long things will take.
“Developing countries may face mounting debt and insufficient international support, risking another lost decade”.
He noted further, “the banking crisis highlights long-neglected financial fragilities and regulatory weaknesses.
“Declining energy costs lead to lower inflation, but elevated food prices maintains a high cost of living in many developing countries.
“Growing global asymmetries threaten developing countries’ resilience, requiring stronger multilateral action and an urgent focus on sovereign debt architecture”.
On debt crisis, he argued that a record number of developing nations are at risk of a debt crisis, with ballooning inflation, escalating borrowing costs and a strong dollar jacking up the cost for borrowing countries to repay loans and raise fresh money.
