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Fragile States Can Unlock Growth by Strengthening Institutions, IMF Says

WASHINGTON, 17 May 2026 – Fragile and conflict-affected states can improve economic stability and long-term growth by strengthening core government institutions, improving public service delivery and rebuilding trust between citizens and the state, according to an International Monetary Fund analysis.

The IMF said about one billion people live across 38 fragile and conflict-affected states, where weaker institutions, conflict risks, social tensions and exposure to external shocks have left economies more vulnerable than more stable peers. These pressures can spill beyond borders through insecurity, migration, refugee flows and trade disruptions, making fragility not only a domestic issue but a regional and global concern.

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Author

  • Chee Liang CFA specializes in financial advice and global economic trends, delivering clear insights to help readers navigate markets, investments, and the shifting dynamics of the world economy.

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