This Trade and Development Report Update warns that developing countries are facing years of difficulty as the global economy slows down amid heightened financial turbulence.
- Global growth expected to be lower than earlier projected, signalling potential economic downturn.
- Developing countries face mounting debt and insufficient international support, risking another lost decade.
- Banking crisis highlights long-neglected financial fragilities and regulatory weaknesses.
- Declining energy costs lead to lower inflation, but elevated food prices maintain high cost of living in many developing countries.
- Growing global asymmetries threaten developing countries' resilience, requiring stronger multilateral action and an urgent focus on sovereign debt architecture.