Low-income countries (LICs) are navigating a highly uncertain global environment shaped by shifting policies in major economies. Changes in trade, migration, spending priorities, and foreign aid are affecting LICs directly and indirectly. While lower food and energy prices and a weaker dollar have provided some relief, cuts in official development assistance are already weighing on many LICs, and tighter immigration policies could weaken remittance inflows going forward. Macroeconomic outcomes also remain highly divergent: growth is projected to rise from 4.8 percent in 2025 to 5.3 percent in 2026, but many LICs still face weak per capita income growth, high debt service burdens, thin reserve buffers, and tighter financing conditions. […]