Economies in fragile and conflict-affected situations (FCS) are burdened by weak institutions and are particularly vulnerable to overlapping shocks—including conflict, natural disasters, commodity price swings, and global downturns. Nearly three-quarters of FCS economies have remained classified as such for over a decade, highlighting the persistence of their challenges and underlying fragility. Limited fiscal space further constrains these economies from responding to shocks and investing in essential services such as education, health, and infrastructure.