Speaking at a G‑24 press briefing on the margins of the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, on Wednesday, the group’s Chairperson, Nigeria’s Finance Minister and Coordinating Minister of the Economy Olawale Edun, said supply chain disruptions, especially in energy markets, are raising inflation risks, widening current account pressures for oil importers and tightening financial conditions for emerging market and developing economies.
Under a baseline assumption of relatively swift normalisation, the group said global growth is expected to ease to 3.1% in 2026 and 3.2% in 2027. However, a prolonged conflict or delayed recovery in production and transport would have a larger impact.
The G‑24 said Africa’s growth is projected to slow from 4.5% in 2025 to 4.2% in 2026, reflecting higher debt service burdens, limited access to affordable finance and rising development needs, particularly in low‑income and fragile states. The group warned the war could leave “severe scarring” through renewed inflation, food shortages and social tensions.
Edun urged policymakers to focus on targeted, time‑bound support for vulnerable households rather than reversing hard‑won reforms. He said governments should preserve market price signals while cushioning the poorest from a cost‑of‑living spike.
On monetary policy, Pakistan’s Central Bank Executive Director Akhtar Javed said central banks face a difficult balancing act between protecting growth and preventing inflation expectations from becoming unanchored. G‑24 Secretariat Director Iyabo Masha noted that the shock is largely supply‑driven, meaning rate hikes may have limited effect unless inflation spills into wages.
The group called for faster reform of the global financial architecture, including accelerated IMF quota realignment and stronger crisis liquidity tools. It urged the World Bank to further leverage its balance sheet to expand lending and to intensify efforts to de‑risk private investment, reduce currency volatility and widen access to credit for micro, small and medium enterprises.
On trade, Edun warned that a retreat from a rules‑based system is driving developing countries toward domestic production and regional integration, while Masha said the World Trade Organisation must remain central to global trade governance.
–ChannelAfrica–
