Finance Secretary Ralph Recto, who is the current chairman of the Intergovernmental Group of Twenty-Four (G-24) Board of Governors, said nations need to work hard to reclaim their lost momentum in eradicating poverty, ending hunger and protecting the environment.
Speaking before the G-24’s technical group meeting in Manila this week, Recto noted the goals under the 2030 Agenda for Sustainable Development, which is a universal action plan that balances economic, social and environmental goals.
“We must keep in mind that 2030 marks a universal deadline for all nations to make substantial progress in eradicating poverty, ending hunger, and protecting the environment,” Recto said.
“With over half a decade remaining until 2030, there is enough opportunity for developing economies to reclaim lost momentum and make a powerful comeback if we unite in concerted action and adhere to fiscal discipline,” he added.
Formed in 1971, the G-24 helps coordinate the positions of developing countries on international monetary and development finance issues, as well as ensure that their interests are adequately represented in negotiations on international monetary matters.
This year, the Philippines is hosting a two-day G-24 technical group meeting with the theme “Building Resilience to Meet Global Challenges” to discuss strategies to efficiently address ongoing economic challenges, including climate financing, changes in global trade regime, resource mobilization and sovereign debt resolution, among others.
Recto noted the COVID-19 pandemic’s deep impact to the global economy, halting its growth momentum and leaving middle and low-income countries with constrained fiscal resources and mounting debt burdens.
“As economies strive for sustainable recovery, the lingering effects of COVID-19 continue to loom over the post-pandemic world as developing nations find themselves in a post-COVID landscape with little to no fiscal buffer amid tighter credit conditions and higher costs of borrowing,” Recto said.
This is being exacerbated by the worsening impacts of climate change disproportionately affecting vulnerable countries as efforts for mitigation and adaptation continue to lag behind, while geopolitical tensions strain global trade, he added.
“All these headwinds persist while countries like ours face the dilemma of achieving fiscal consolidation to restore pre-COVID levels of growth and address widening inequality and food insecurity,” Recto said.
“We are witnessing the weakest global growth in any half-decade since the 1990s, with one in every four developing countries now poorer than prior to the pandemic,” he added.
Recto said the World Bank expects global growth to decline for the third year in a row, reaching 2.4 percent in 2024 and 2.7 percent in 2025 — significantly lower than the pre-pandemic average of 3.1 percent.
He said any slowdown in global economic performance will certainly hit developing economies, threatening the peace and prosperity of people worldwide.
“We have now reached a critical threshold. Without decisive and major corrective actions to protect our hard-won gains, the developing world is at the risk of falling even further behind,” he added.
“Traditional interventions are no longer sufficient. We need bold and innovative solutions to help developing economies sustain productivity, boost long-term growth prospects, and increase resilience to economic shocks,” Recto also said.
