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Vol 67 No 21

Published 23rd October 2026


Growth upgrade fails to ease debt squeeze

The IMF and World Bank lift forecasts, but high US and European yields mean the cost of borrowing will punish African governments

Stronger forecasts and new investment plans at the International Monetary Fund and World Bank annual meetings in Bangkok on 12–18 October did little to dispel the shadow cast by high borrowing costs and widespread poverty. Rising benchmark yields in western economies, to which African spreads are added, keep external financing expensive despite a recovery in African currencies. Delegates left Thailand with improved projections but no clear path through the financing constraints holding back investment and public services.

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