The Intergovernmental Group of Twenty-Four has sounded the alarm on the growing debt burden crushing developing economies, warning that debt-servicing costs now vastly outweigh financial inflows from advanced nations.
G24 Chair and Nigerian Finance Minister Olawale Edun told NewsFirst at the IMF Spring Meetings in Washington that developing countries spent approximately US$163 billion on debt servicing in 2024 — more than three times the US$47 billion they received in overseas development assistance.
“The result is a net resource outflow from emerging economies,” Edun said, calling on advanced nations and multilateral development institutions to provide stronger support, including liquidity assistance.
The warning carries particular resonance for Sri Lanka, which emerged from its sovereign debt restructuring only to face a dual macro shock from the Middle East energy crisis and Trump tariffs. The country’s delegation, led by State Minister Eran Wickramaratne, is at the Spring Meetings seeking to navigate both pressures.
Edun emphasised that domestic resource mobilisation and private-sector participation remain essential for long-term resilience, citing Nigeria’s comprehensive tax reform as a model for improving revenue collection while reducing burdens on low-income earners.
The G24 statement adds to a chorus of warnings from multilateral institutions about the compounding impact of war, trade disruption, and tightening financial conditions on the world’s most vulnerable economies.
