The COVID-19 pandemic and sanctions against Russia greatly influenced the global economy, including developing countries. The first part of this article explores the main macroeconomic trends in emerging economies, including the decline of economic growth rates after the shocks of 2020–22, dynamics of external debt, government deficit, unemployment, and inflation.

The hugely increased financing needs of developing countries against the background of financial constraints requires a fine adjustment of the development assistance allocation system, especially from multilateral agencies. The second part of this article highlights the current situation in terms of usage of economic vulnerability as one of the criteria for allocation of concessional finance. This includes the most relevant experience of the Caribbean Development Bank and its concessional body, the Special Development Fund.