These countries generate 40% of global GDP but are home to 60% of the world’s poor. UNCTAD’s chief urges debt relief and trade reform to help them escape the middle-income trap.

Addressing the structural barriers to sustainable development, UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan highlighted the paradox faced by middle-income countries: "too rich to be poor" but "too poor to be rich." 

Despite generating 40% of global GDP, these countries are home to 60% of the world's poor, underscoring the urgency of focusing on the needs of poor people in these nations. ​

Ms. Grynspan delivered the keynote speech to a United Nations General Assembly high-level ​meeting on middle-income countries held on 1 April at the UN’s headquarters in New York.

Three factors contribute to the middle-income trap

She emphasized three key factors contributing to the middle-income trap: poverty, commodity dependence and trade.

Many middle-income countries remain dependent on commodities, with large debt burdens hindering economic diversification and public investment. ​Trade integration has increased, yet harmful trade restrictions continue to pose challenges. ​

Call for debt restructuring, trade reform and multilateralism

The UN Trade and Development chief called for a stable mechanism for debt restructuring and long-term affordable financing from global and regional development banks. ​She also advocated for trade system reform and regional trade agreements to support middle-income countries. ​

Looking ahead, the 16th UN Conference on Trade and Development (UNCTAD16), set to be held in October in Viet Nam – a middle-income country – will address critical challenges facing these nations, including the digital economy, debt relief and resilient supply chains.

Ms. Grynspan urged multilateralism to help middle-income countries escape the development trap and shape a sustainable, digital and equitable future.