G24 Warns Conflicts, Crises "Weighing Heavily" on Global Economy

The Intergovernmental Group of Twenty-Four has voiced deep concern over the growing number of geopolitical crises worldwide, warning that escalating conflicts, particularly in the Middle East, are intensifying pressure on an already fragile global economy.

In a statement issued on the sidelines of the Spring Meetings of the International Monetary Fund and the World Bank, the group said ongoing war is not only worsening humanitarian conditions and destroying civilian infrastructure but also amplifying economic vulnerabilities, especially in developing and emerging economies.

The G24 cautioned that persistent disruptions to global supply chains and energy markets could slow global economic growth in 2026 compared to 2025. At the same time, rising prices for energy, food, fertilizers, and transportation are expected to fuel inflationary pressures worldwide.

The group stressed the importance of safeguarding international shipping routes and halting attacks on energy infrastructure to prevent further market volatility.

According to the statement, medium-term economic prospects remain highly uncertain, particularly for energy-importing nations facing strained public finances and rising borrowing costs due to tighter global financial conditions.

These dynamics could lead to reduced capital flows դեպի developing countries, further complicating recovery efforts and increasing the risk of financial instability.

The G24 emphasized the need to strengthen the global financial safety net, placing a well-resourced IMF at its core. It called for the swift completion of the funds’s 16th quota review and greater representation for developing countries within its governance structure.

The group also urged the IMF to enhance flexibility in its lending programs and accelerate reforms of its financial instruments to better support low-income countries, alongside boosting the use of Special Drawing Rights.

On the development front, the G24 highlighted the importance of scaling up the World Bank’s efforts in job creation and infrastructure financing. It called for innovative financing mechanisms and stronger private sector participation, particularly to support small and medium-sized enterprises.

The group also renewed calls for faster progress on global debt restructuring, emphasizing transparency and fair, coordinated approaches to sovereign debt resolution. Supporting developing countries in managing their debt remains a priority to avoid future crises.

In parallel, the G24 stressed the urgency of sustained international action on climate change through increased concessional financing, technology transfer, and technical support.

Concluding its statement, the group warned against unilateral trade measures such as tariffs and sanctions that disrupt global trade, advocating instead for a transparent, rules-based multilateral trading system to support stability and long-term growth.

Egypt, a regular participant in G24 discussions, continues to play a role in representing the interests of developing economies during these high-level international forums.