Statement by the Managing Director of the International Monetary Fund - for the Development Committee One Hundred and Thirteenth Meeting - April 16, 2026

Jul 19, 2026

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Development Committee members receive a written statement from IMF Managing Director Kristalina Georgieva for the committee’s 113th meeting on April 16, 2026. The statement highlights spillovers from the war in the Middle East, describing global and uneven economic impacts that hit low-income developing countries hardest. It outlines transmission channels including disrupted supplies, commodity price pressures, inflation and expectations effects, tighter financial conditions, exchange-rate pressures, and reduced remittances. The response calls for pragmatic policy frameworks, structural reforms, enhanced resilience, and IMF readiness to provide tools and balance-of-payments financing for vulnerable states.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

Development Committee: The Managing Director's Written Statement

Statement for the one hundred and thirteenth meeting

Development Committee: The Managing Director's written statement (April 2026)

Economic outlook and risks

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND THIRTEENTH MEETING WASHINGTON, DC – APRIL 16, 2026 DC/S/2026-0032 April 16, 2026 STATEMENT BY THE MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND Attached for information for the Members of the Development Committee is a Statement from the Managing Director of the International Monetary Fund, Kristalina Georgieva for the Committee’s one hundred and thirteenth meeting to be held on April 16, 2026. DEVELOPMENT COMMITTEE: THE MANAGING DIRECTOR'S WRITTEN STATEMENT April 2026 The world faces the spillovers from the war in the Middle East. In addition to the human toll, its economic effects are global and uneven, once again hitting the poorest and most vulnerable countries the hardest. This comes at a time when policy space has been eroded and geopolitical tensions have been increasing. Spillovers to Low-Income Developing Countries (LIDCs) will transmit through supply disruptions, higher commodity prices, second-round effects on inflation and expectations, tighter global financial conditions, exchange rate pressures, and reduced remittances from members of the Gulf Cooperation Council (GCC). The appropriate policy response depends on how the shock propagates through the domestic economy, calling for pragmatism and agility, supported by credible policy frameworks. In LIDCs, near term policies should be anchored in credible frameworks, while concerted efforts are key to enhance resilience and growth potential. Domestic structural reforms, including building strong institutions, also have an important role in the medium-term to attract stronger FDI inflows and create jobs. Robust support from the international community will be essential—especially for the most vulnerable LIDCs and fragile and conflict-affected states (FCS). The IMF stands ready to deploy all its tools to assist the membership—supporting sound policies, helping ensure this new test does not derail key medium-term priorities, and providing balance of payments financing where needed. ECONOMIC OUTLOOK AND RISKS The resilience of the global economy is once again being tested. Global growth will slow and inflation will pick up. The global economy has demonstrated resilience through repeated shocks, including from ongoing wars and conflicts, and elevated uncertainty. It now faces a major new test. The war in the Middle East has already caused damage to critical infrastructure and disrupted transport, affecting trade and energy, and poses a serious threat to the global economy. Fuel and fertilizer prices could remain high fora prolonged period, and shortages of key inputs could have implications for energy, food, and other industries. The war has also triggered other spillovers, such as forcibly displaced people and reduced travel and tourism. At the same time, profound transformations in technology, demographics, and the environment are creating complex challenges and new opportunities. The outlook is highly uncertain, but even with a relatively swift normalization, growth will slow and inflation will increase. Under our reference forecast—in which disruptions fade by mid-2026—global growth is projected at 3.1 percent in 2026 and 3.2 in 2027, below its recent pace of about 3.4 percent in 2024–25. Relative to Growth in AEs is projected to remain subdued. For EMDEs, growth is also expected to moderate, with large regional variations. LIDCs face additional challenges, particularly the most vulnerable, reliant on energy and food imports. the January 2026 World Economic Outlook (WEO), the forecast is revised down by 0.2 percentage point for 2026 and that for 2027 is unchanged, reflecting disruptions from the conflict in the Middle East, partly offset by continued tailwinds, including lower tariff

FAQs

What spillovers from the Middle East conflict are emphasized for low-income developing countries?

The statement highlights supply disruptions, higher commodity prices, second-round inflation and expectation effects, tighter global financial conditions, exchange-rate pressures, and reduced remittances from GCC members.

What policy approach does the statement recommend for low-income developing countries in the near term?

Near-term policies should be anchored in credible frameworks, combined with efforts to strengthen resilience and support growth potential.

How does the statement describe the IMF’s role and readiness to support member countries?

The IMF stands ready to deploy all tools to support sound policies, help ensure medium-term priorities are not derailed, and provide balance-of-payments financing when needed, especially for the most vulnerable LIDCs and fragile and conflict-affected states.

Jul 19, 2026

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