Research trip to the International Monetary Fund (IMF) and World Bank Group Spring Meetings 2026 in Washington, D.C.

Portfolio Managers from the Emerging Markets Fixed Income team visited Washington, D.C., in mid-April 2026 during the International Monetary Fund (IMF) and World Bank Group Spring Meetings that bring together policymakers, IMF staff and market actors from around the world. They share their views on selected countries based on meetings and discussions held during the research trip.

Nigeria

Nigeria has been in the spotlight of emerging market debt investors for the past two years. The country previously struggled with high levels of vulnerability, but this has changed markedly under the current administration and investor sentiment towards Nigeria has remained optimistic. The country’s financial markets have been well supported, and Nigeria’s foreign exchange reserves have even increased during the recent period of turbulence. The significant number of supportive reforms pushed through by the current administration has left the country in a better position to withstand external challenges. Next year is an election year in Nigeria and this is likely to create a strong incentive for the current administration to maintain economic stability. The country’s high level of reserves should support these efforts.

Colombia

Colombia’s main macro challenge stems from an exceptionally large increase in the minimum wage following an already sizable hike in the previous year, with these rises having come on top of an already elevated inflation back-drop. This cumulative wage shock has significantly boosted consumption, pushed up costs in labor intensive services and lifted inflation expectations across the economy. In response, the Central Bank of Colombia has delivered a front loaded 200 basis points tightening cycle since the start of the year. Economic activity has increased on the back of strong domestic demand coming from private consumption, while investment has remained weak. Political risks are also rising.

China

As the Iran conflict began to unfold, China remained in a relatively strong position, with its economic growth being less impacted than that of most other countries. Its large strategic oil reserves, diversified trade links (including with Russia) and a rising share of renewables are helping to cushion near term energy and geopolitical shocks. However, substantial structural challenges remain. China’s real estate downturn has now lasted for more than five years and continues to weigh on confidence and consumption. More durable domestic consumption growth would require deeper reforms to social safety nets and the Hukou sys-tem to lower precautionary savings.

Senegal

Senegal is facing a difficult situation at present. The Senegalese authorities requested a new program in October 2025 after the IMF halted the previous program in 2024 following the emergence of previously undisclosed liabilities from the previous government. The IMF estimates gross government debt to be around 130% of GDP, and this remains the main hurdle to reaching an agreement. Refinancing liquidity conditions have been tight, and Senegal has relied heavily on regional financing in the West African Economic and Monetary Union market, concentrated at very short maturities, creating heightened refinancing risks. The country has also entered into several total return swap transactions to secure financing. Senegal’s government has ruled out debt renegotiations and is instead focusing on fiscal consolidation.

Costa Rica

Costa Rica’s macroeconomic backdrop has strengthened following the easing of the political gridlock in the wake of the 2022 elections, which ended a long period of minority governments. Growth has since improved and rating momentum has been supportive. Free trade zones remain the primary engine of expansion and a key anchor of the country’s external competitiveness. In contrast, growth in the domestic economy has become more muted. Costa Rica’s electricity generation mix, which consists almost entirely of renewables, helps to limit the pass-through from imported energy prices and supports resilience. Security concerns, remain high on the public agenda. The reform narrative has continued following the February elections in which Laura Fernández and her party secured a legislative majority.