Poorest countries face lost decade due to Covid-19, says IMF

The shock waves from Covid-19 will lead to a lost decade for the world’s poorest countries unless they get concerted and urgent help, the International Monetary Fund has said. The Washington-based IMF said low-income developing countries (LIDCs) entered the pandemic in a vulnerable position and faced the prospect of their progress in poverty reduction over the past seven to 10 years being wiped out. In a blog, IMF economists called on the international community to adopt a seven-point plan so that poor countries could cope with Covid-19 and recover quickly. Growth, which averaged 5% in 2019, was likely to come to a standstill this year, the IMF said, adding that previous pandemics had left permanent scars. It backed a recent call from the World Bank president, David Malpass, for a more ambitious programme of debt relief that would move beyond repayment holidays to a reduction in the stock of debt.