IMF: developing economies under pressure

digital economy Global economic growth is expected to be 3.1%, while global inflation will reach 4.7%, according to the latest World Economic Outlook from the International Monetary Fund (IMF), published on Tuesday. In a context marked by geopolitical tensions, rising energy costs, and the intensification of extreme weather events, developing economies are facing growing challenges. While the rise of artificial intelligence and new technologies supports the prospects of countries exporting technology products, many vulnerable economies struggle to benefit from this dynamic. They simultaneously experience the effects of rising energy prices, climate disasters, and the burden of debt. According to the data mentioned, more than 60% of low-income countries are already in debt or face a high risk of a debt crisis. This situation reduces their budgetary leeway and complicates the financing of public services and the investments necessary for their development. Energy and climate, a double challenge for vulnerable countries During the annual meetings of the World Bank and the IMF, held in Bangkok, representatives of several developing economies emphasized the consequences of international tensions on their economic prospects. Fluctuations in oil and energy prices are reflected in the costs of transport, fuels, and many goods and services. These pressures fuel inflation and further weaken households and businesses. These difficulties are compounded by the consequences of extreme weather events, which particularly affect countries with limited resources to finance their adaptation to climate change. "We are evolving in a difficult environment, marked by geopolitical issues that influence oil and energy prices, with repercussions on the costs of transport and fuels in all countries. This exerts strong inflationary pressures. Added to this are the climate vulnerabilities, linked to the intensification of extreme weather events. Many developing countries are particularly affected and vulnerable. I come from the Caribbean, which is the second most vulnerable region in the world." Artificial intelligence, an unevenly distributed opportunity Despite these difficult prospects, the development of artificial intelligence and new technologies represents a growth lever for some economies. The countries producing technologies and those participating in the AI supply chains particularly benefit from more favorable economic prospects. However, this dynamic remains unevenly distributed. Many developing countries still lack the digital infrastructure, specialized skills, and investment capacity needed to fully exploit these innovations. For Wayne Henry, strengthening digital connectivity is a priority to reduce this gap and allow vulnerable economies to better integrate into the new global value chains. Among the positive elements, we observe the rise of artificial intelligence and new technologies. The countries producing technology and AI, especially those participating in the AI supply chains, have seen their growth prospects revised upwards. However, many developing economies, especially in some of our regions, do not benefit from this dynamic. We must catch up by strengthening digital connectivity to make more profit from technological advances, emphasizes Wayne Henry, President and CEO of the Planning Institute of Jamaica. Budget discipline and social protection Faced with the worsening financial constraints, economic officials defend a strategy based on two complementary priorities: controlling public spending and debt, while preserving social protection systems essential for the most vulnerable populations. The purification of public finances must allow states to regain budgetary leeway. But financial adjustments also risk weakening households if essential spending, especially in health, education, and social assistance, is reduced without caution. In parallel, investments in digital infrastructure, internet access, and training must enable developing countries to participate more in the global technological transformation. A major challenge for the world economy The prospects presented by the IMF highlight the disparities between economies capable of benefiting from technological growth and those that remain exposed to energy, climate, and financial shocks. For low-income countries, the challenge is now to reconcile debt stabilization, protection of the population, and modernization of their economies. 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