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Sunday, 18 October 2026

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Developing Countries Are Being Told to Spend Less When They Need to Build More

Developing economies face rising borrowing costs while needing more investment in essential services. The challenge is balancing financial stability with future growth.

By Katherine (Kay)3 min read

Bangkok, 18 October 2026 – Developing countries face a difficult financial balancing act. Many need greater investment in transport, healthcare, education, energy and digital infrastructure.

At the same time, high borrowing costs and debt repayments are placing pressure on government budgets.

Discussions surrounding the October 2026 IMF and World Bank meetings have highlighted the challenge.

International financial institutions continue to emphasise fiscal discipline, debt sustainability and private investment. But developing economies are also seeking stronger support to address infrastructure gaps, employment needs and economic vulnerabilities.

The problem is not simply whether governments should spend more or less. It is how they can afford to invest in the future without weakening their finances today.

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Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.