IMF urges support for poorer nations facing high inflation, war spillovers

What the report says

The International Monetary Fund says poorer countries need stronger support as they confront high inflation, heavier debt burdens and price shocks linked to conflict. Speaking at the close of the IMF’s annual meetings in Bangkok, Managing Director Kristalina Georgieva said the global economy showed resilience, but warned that low-income nations are being squeezed by higher borrowing costs, rising energy prices and limited access to the investment surge tied to artificial intelligence.

According to Al Jazeera’s report, Georgieva said low-income countries are now spending about 8 to 14 percent of their revenue on debt repayments, and that inflation hits poor households hardest. She also tied recent pressure on oil-importing countries to disrupted energy flows and wider war spillovers, while an IMFC statement cautioned that conflicts and trade tensions could worsen commodity prices and food and energy security.

Georgieva said the IMF has a responsibility to help countries restructure debt when needed and to support policies that protect vulnerable people while encouraging growth and private investment. She added that the fund is seeking more resources for low-income members.

The report also said the IMF expects to support Iraq with a loan programme and is in detailed talks with Lebanon over a possible arrangement. The broader significance is that the Fund is signalling continued focus on debt relief and crisis support for fragile economies at a time of elevated global risks.