By: Oladeinde Olawoyin
On Tuesday, the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24) expressed concerns over the tightening of global aid budgets amid escalating needs and severe humanitarian suffering caused by global crises and conflicts in various parts of the world.
The group also noted that predictable, needs-based, and principled humanitarian support is essential for restoring stability, preserving development gains, and enabling early recovery while urging the international community to maintain existing aid commitments and uphold the integrity of humanitarian action for recovery, reconstruction, and long-term development.
The group made its position known in its communique after its ministers held their one-hundred-and-thirteenth meeting in Washington, D.C. The meeting was chaired by Pablo Quirno, Secretary of Finance, Argentina; Olawale Edun, Minister of Finance, Nigeria, was First Vice-Chair; and Muhammad Aurangzeb, Minister of Finance, Pakistan, was Second Vice‑Chair.
The meeting was also attended by the Director of the G-24 Secretariat, Iyabo Masha, and other special guests such as Kristalina Georgieva, Managing Director International Monetary Fund; Anna Bjerde, Managing Director of Operations, World Bank Group; and Patrick Achi, Former Prime Minister of Côte d’Ivoire, and External Advisor to the Bretton Woods at 80 Initiative.
The G24 countries are a group of developing nations that coordinate their positions on international monetary affairs and development, particularly within the International Monetary Fund (IMF) and World Bank. They primarily represent the interests of emerging economies in global financial and economic discussions.
In its communique, the group said it was concerned about the increasing scale and complexity of these crises, as their associated challenges continue to exert significant pressure on frontline states, especially in developing areas.
The group noted that the global economic outlook is uncertain because of increasing geopolitical tensions and trade conflicts arising from sudden shifts in trade policies in major economies. Global growth is expected to moderate in 2025 and remain steady in 2026, it said, but at a level that is insufficient to accelerate progress towards sustainable economic development.
”Tariff hikes would likely lower real wages and disrupt global supply chains. Such tariff increases could disproportionately impact Emerging Markets and Developing Economies (EMDEs) and Low-Income Countries (LICs), given their limited diversification and greater dependence on imported inputs.
“The impact of tariff measures on inflation remains uncertain. Many EMDEs have experienced rising bond yields, capital flow reversals, and depreciating currencies following tariff hikes. Tighter financial conditions could exacerbate external, fiscal, and debt vulnerabilities, jeopardising financial stability and hindering economic progress,” the group said. Domestic buffers
Given the global developments, the group said domestic policymaking is the first line of defence as fiscal policies should safeguard fiscal sustainability and rebuild buffers, remain growth-friendly, and catalyse public and private investments towards productivity-enhancing reforms.
“Central banks should continue their efforts to maintain price and financial stability in line with their respective mandates, adjusting their policies in a data-dependent manner. We recognise the importance of structural reforms to sustainably raise productivity and growth, address increasingly acute challenges and strengthen social safety nets in line with country-specific circumstances,” it noted.
The group said the IMF’s recent reviews and enhancements to its policies and procedures would increase support for member countries and safeguard global economic stability. It welcomed the planned reviews of the joint World Bank-IMF Low-Income Countries Debt Sustainability Framework, capacity development priorities and appropriate financing, programme design and conditionalities, and engagement on macro-critical challenges. “These reviews are vital for ensuring that the IMF remains relevant and effective in addressing the diverse needs of its membership,” it added.
Emerging Markets
Emerging Market and Developing Economies( EMDEs), particularly those with limited access to affordable short-term and crisis-related liquidity, are likely to become more vulnerable in the period ahead, the group warned.
Therefore, it noted that it is crucial to address the imbalances in liquidity access and strengthen crisis prevention and response capabilities, including by enhancing existing financial safety nets.
“We welcome the IMF’s commitment to working closely with the Regional Financing Arrangements to improve coordination within GFSN layers. The growing risks associated with global economic fragmentation and the diverse degrees of exposure to new trade policies require more intense surveillance, technical assistance, and policy advice on internal and external stability. “These reviews are vital for ensuring that the IMF remains relevant and effective in addressing the diverse needs of its membership,” it added.
Emerging Markets
Emerging Market and Developing Economies( EMDEs), particularly those with limited access to affordable short-term and crisis-related liquidity, are likely to become more vulnerable in the period ahead, the group warned.
Therefore, it noted that it is crucial to address the imbalances in liquidity access and strengthen crisis prevention and response capabilities, including by enhancing existing financial safety nets.
“We welcome the IMF’s commitment to working closely with the Regional Financing Arrangements to improve coordination within GFSN layers. The growing risks associated with global economic fragmentation and the diverse degrees of exposure to new trade policies require more intense surveillance, technical assistance, and policy advice on internal and external stability. “We call for a deeper understanding of the impacts of capital flow volatility on EMDEs, especially those with shallow financial markets. Future research and policy recommendations should prioritise managing these flows, safeguarding balance sheets, and mitigating exchange rate risks,” the group said.
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