WASHINGTON (Reuters) – Low-income countries will need nearly $500 billion in external financing during the 2022-2026 period, the International Monetary Fund said on Thursday, an increase of about $57 billion from a year-ago estimate due largely to spillovers from Russia’s war in Ukraine.
The IMF said in a new policy paper that the Ukraine war, which has exacerbated inflation with major increases in global food, energy and fertilizer prices, will slow down the recovery of low-income countries from the COVID-19 pandemic and further delay income per-capita convergence with more advanced economies.
(Reporting by David Lawder)