G24 flags global economic uncertainty amidst signs of improvement
Date
4/17/2024 8:26:40 AM
(MENAFN) On Tuesday, the G24, an international group comprising 24 nations, highlighted that while the global economic landscape has shown some improvement, it remains shrouded in uncertainty due to various challenges faced by many countries. Among the hurdles cited are reduced access to finance, stringent external financing conditions, elevated debt levels, and inflationary pressures.
During their meeting in Washington, the finance ministers and central bank governors of the G24 emphasized the need for initiatives aimed at bolstering the financing available to developing countries to address these challenges effectively. Against the backdrop of the ongoing International Monetary Fund and World Bank Spring Meetings, policymakers from around the world have gathered in Washington to discuss strategies for navigating the complex economic environment.
The G24 called for reforms of the IMF's short-term financing tools and advocated for an increase in concessional financing for low-income nations. They also urged a reassessment of IMF fees and surcharges to ensure equitable access to financial resources. Furthermore, the group emphasized the importance of donor countries allocating a greater share of Special Drawing Rights to countries in need, underscoring the significance of international cooperation and solidarity in addressing global economic challenges.
The bloc stated that these efforts would provide additional financing to member states to “mitigate shocks and invest in climate action and sustainable development”.
Special Drawing Rights (SDRs) serve as the International Monetary Fund's unit of exchange, comprising a basket of the world's five leading currencies: the dollar, euro, yuan, yen, and British pound. This composite nature ensures a diversified and stable form of international reserve assets.
Despite a resilient global economy in 2023, the IMF noted that the benefits of this growth were not evenly distributed, particularly with low-income countries continuing to grapple with the lingering effects of the Covid-19 pandemic. Such disparities underscore the importance of targeted support and concerted efforts to address the ongoing challenges faced by vulnerable economies.
Looking ahead, the IMF anticipates a modest improvement in the global economy, forecasting growth to increase from last year's 3.1 percent to 3.2 percent in 2024. This projection reflects cautious optimism amid ongoing uncertainties and potential risks in the economic landscape.
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