G-24 Warns Global Growth to Slow as Conflicts, Supply Disruptions Bite

In a communique issued after its ministerial meeting in Washington, the G-24 said global growth is projected to decline in 2026 compared to 2025, as the fallout from the war in the Middle East and other crises ripples across energy markets and supply chains.

"The war in the Middle East is causing deterioration in the well-being of affected populations, as well as damage to civilian infrastructure," the group said, noting that these developments are taking "a significant toll on an already weak global economy, with particularly devastating effects on emerging market and developing countries."

The group underscored the risk of rising inflation driven by higher energy, food and fertiliser prices, alongside increasing supply chain costs. It also stressed the need to safeguard maritime routes and called for "cessation of attacks on energy infrastructure," warning that restoring damaged assets is costly and time-consuming.

Oil market stability remains a concern. The G-24 noted that efforts by OPEC Declaration of Cooperation countries to use alternative export routes have helped reduce volatility, but warned that disruptions continue to pose risks to global supply.

The medium-term outlook remains uncertain, with mounting pressure on oil-importing nations' current accounts and the possibility of rising borrowing costs due to higher interest rates and exchange rate pressures, it said. Tighter financial conditions and increased risk aversion could further limit capital flows to developing economies, it added.

The group also called for strengthening the global financial safety net, placing the International Monetary Fund at its centre. It urged timely completion of quota reforms to enhance the representation of emerging and developing economies and protect the share of the poorest members.

"The need for a strong Global Financial Safety Net... is now more important than ever," the communiqué said, adding that the IMF must remain "proactive and agile" in responding to evolving risks.

On the development front, the G-24 highlighted the role of the World Bank Group in boosting job creation, infrastructure investment and financing for vulnerable countries. It called for expanded lending capacity and greater mobilisation of private capital, particularly for micro, small and medium enterprises.

The group also flagged rising debt vulnerabilities, urging coordinated and timely sovereign debt restructuring and greater transparency in debt management. It welcomed progress under the G20 Common Framework and called for further reforms to the international debt architecture.

Climate financing and multilateral cooperation were identified as critical priorities. The G-24 urged developed countries to honour commitments, including the target of $300 billion annually by 2035 for climate finance, and called for increased technology transfer and concessional funding.

Finally, the group warned against protectionist trade measures, saying unilateral tariffs and sanctions undermine global integration. It reiterated the need for a "rules-based, non-discriminatory" multilateral trading system to restore confidence and support global growth.

The G-24 comprises developing countries from Africa, Asia and Latin America and plays a key role in coordinating positions on international monetary and development issues, particularly at the IMF and World Bank. India is a member of the Asian group within the bloc.

The communique comes as global policymakers gather in Washington for the Spring Meetings of the IMF and World Bank, amid heightened geopolitical tensions and growing concerns over the resilience of the world economy.

- IANS