Digital Connectivity for Developing Nations Gains Focus at IMF Meetings
Developing economies need to expand digital connectivity to share in the AI-driven recovery, a Jamaican planning official said at the IMF annual meetings in Bangkok. Wayne Henry, director general of the Planning Institute of Jamaica, said countries like his face higher energy prices and climate damage while the gains from technology flow elsewhere. The case for digital connectivity for developing nations rests on that widening gap.
The IMF released its World Economic Outlook on October 13 in Bangkok. It projects global growth of 3.1% in 2026, down from 3.5% in 2025, and 3.4% in 2027. Higher energy and food prices are expected to push global headline inflation from 4.1% in 2025 to 4.7% in 2026. Both figures are forecasts, not outturns.
The AI boom is concentrating growth. Only 32 countries now account for 95% of global growth, down from 54 in April. Henry said economies in the AI supply chain have seen upward revisions, but many developing countries, including those in his region, have not. He said they need to catch up on connectivity to benefit.
He also pointed to geopolitical tensions pushing up oil and transport fuel costs, and said Caribbean countries are among the most exposed to climate hazards.
IMF economist Deniz Igan said resilience is becoming uneven: AI-boom economies are doing relatively well, while many energy importers and lower-income economies face a tougher environment. Debt distress adds to that. Africanews reported that more than 60 percent of low-income nations are in or near debt distress. The IMF has also warned that higher borrowing costs and interest payments could crowd out critical spending and reduce fiscal buffers. Countries have to fund connectivity from tighter budgets.
The meetings ran from October 12 to 18 and drew nearly 20,000 attendees from 191 countries. The next IMF forecast will show whether the gap between AI-exposed economies and the rest narrows. Watch for funding commitments on digital connectivity for developing nations, which this meeting’s coverage did not announce.
