In a critical moment for the global economy, Secretary-General Rebeca Grynspan presented the organization's Trade and Development Report 2024 on 29 October 2024 in Geneva.
Titled “Rethinking development in the age of discontent”, the Trade and Development Report 2024 calls for urgent reforms to support developing countries to navigate current challenges.
Low growth, high debt, weak investment, the risk of fragmented trade and widespread discontent are impacting the whole world. These challenges are deepening the divide between industrialized and developing nations.
The report, published on 29 October, warns that global growth is at a new "low normal" of just 2.7% for 2024-2025, with developing nations facing the harshest impacts.
Debt and protectionism pose hurdles, while South-South trade opens opportunities
Key findings reveal that debt in developing countries has surged by over 70% since 2010, severely limiting their fiscal capacity to implement structural reforms.
The report also highlights the stagnation of global trade, exacerbated by geopolitical tensions and rising protectionism. With trade as a share of global GDP peaking in 2008, its revival remains uncertain, posing a significant hurdle to sustainable economic development.
However, amidst these challenges, the report underscores transformative opportunities, particularly in South-South trade, the energy transition and the digital economy. South-South trade has doubled, reaching $5.6 trillion by 2023, presenting a chance for diversification and resilience.
Tectonic changes affecting the global economy
Launching the report in Geneva, UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan emphasized the tectonic changes affecting the global economy, including the transition to a low-carbon economy, the digital revolution and geopolitical tensions impacting trade.
Ms. Grynspan called for reforms to the international financial architecture, including support for multilateral trade agreements and sustainable finance initiatives.
“We must seize the moment to rethink development policies,” she urged. "Collaborative action is vital to ensure a sustainable and equitable future for all." She concluded, “We cannot be complacent.”