G24 Sounds Alarm: Debt, Trade Tensions Threaten Fragile Global Recovery

COLOMBO (News 1st); The Intergovernmental Group of Twenty-Four (G24) has issued a strong call for coordinated global action to tackle mounting economic challenges, warning that rising trade tensions, policy uncertainty, and debt vulnerabilities are constraining growth prospects for emerging markets and developing economies (EMDEs).

In its latest communiqué, the G24 noted that global growth remains below pre-pandemic levels, with inflation easing but still persistent.

“Trade tensions and policy uncertainties are weighing heavily on EMDEs,” the statement said, citing deteriorating terms of trade, declining export volumes, and reduced foreign currency earnings—including remittances—as key risks to macroeconomic stability.

The group stressed the importance of central bank independence to maintain monetary policy credibility and urged structural reforms to support private sector-led growth.

However, constrained fiscal space and debt distress underscore the need for collective and coordinated solutions backed by multilateral institutions.

Key Measures Proposed by G24:

Strengthening IMF Capacity: The G24 called for timely completion of the 16th General Review of Quotas (GRQ) and urged exploration of mechanisms for regular issuance of Special Drawing Rights (SDRs) to support EMDEs and low-income countries.

Inclusive Debt Architecture Reform: The group pressed for improvements to the G20 Common Framework and broader reforms to ensure predictable, timely, and coordinated debt treatments with full creditor participation—including private sector and multilateral institutions.

Enhancing Governance and Representation: G24 emphasized that quota realignment at the IMF should reflect members’ economic weight while protecting EMDE shares and improving regional representation.

Mobilizing Private Capital: The communiqué welcomed progress on the World Bank’s Evolution Roadmap, calling for accelerated efforts on financial incentives, hybrid capital, and pricing reforms to boost lending capacity and job creation.

Safeguarding Multilateralism: The group warned that challenges to multilateral cooperation threaten global growth, climate action, and poverty eradication, urging closer collaboration among the WTO, Bretton Woods institutions, and national governments.

The G24 reiterated that MDBs remain the cornerstone of long-term development finance and called for deeper domestic capital markets, de-risking private investment, and mitigating currency risks to mobilize sustainable financing.

“A fair, transparent, and rules-based multilateral system is central to global prosperity, peace, and stability,” the statement added.