The policy reforms instituted by many developing countries in recent years have fostered macroeconomic stability, promoted higher domestic saving, and facilitated renewed access to international capital markets. These reforms have also raised the efficiency with which saving is utilized, which has contributed to improved international competitiveness and higher growth. Provided that the momentum of reforms is sustained, capital inflows are allocated productively, and the trade environment does not deteriorate, investment and growth prospects for many developing countries are more promising than they have been since the early 1970s. For some low-income countries, however, in addition to improved domestic policies, greater efforts will be needed on the part of the international community to ensure adequate flows of official and private external financing to complement domestic resources.
International Monetary Fund Copyright © 2010-2021. All Rights Reserved.