All eyes will turn on Tuesday to New York City, the United States of America, where the United Nations General Assembly (UNGA) is expected to gather in its 78th session, which will be filled with many hot economic files that will be presented to global decision-makers to discuss challenges and ways to overcome them to reach sustainable solutions at the lowest cost.
Relevant topics will include inflation along with the sharp rise in commodity and food prices, monetary tightening policies applied by the world’s major central banks, which gradually raised interest rates, placing additional burdens on the various economic sectors, especially the private ones, the geopolitical and economic conflicts, foremost of which is the Russian-Ukrainian war, the COVID-19 repercussions and issues of debt and international trade pose great challenges, which everyone, states, governments and individuals, fear their unexpected results, especially in light of near-daily forecasts and analyses, whose owners expect a sharp decline and regression in the pace of global economic growth.
Member states’ leaders will discuss, face-to-face, in New York, a package of comprehensive and interrelated issues that affect the achievement of the 2030 Agenda for Sustainable Development Goals, especially concerning eradicating poverty and hunger, health and education for all, access to clean water, and providing decent work and sustainable cities and communities.
In this context, Economic Analyst Mubarak Al Tamimi said that world leaders are facing many challenges, the most prominent of which is the increase of debt, especially in developing countries, causing large financial burdens that restrict the countries’ ability to grow and develop. The continuous rise in interest rates has had repercussions on the commitment of these countries and their ability to pay and weakened their efforts to attract investments due to currency depreciation. Additionally, the increase in the cost of borrowing affected investment, expansion, and growth and increased unemployment rates, he pointed out.
Al Tamimi added to Qatar News Agency that the global challenges are complex and intertwined and require concerted joint efforts between countries and international financial organizations, pointing out the need to restructure debts to reduce the financial burden and enable countries to reinvest in other development sectors.
He explained that the economic challenges expected to be discussed within the UNGA’s 78th session (UNGA 78) meetings require strengthening international cooperation and exchanging experiences between countries, as well as the importance of forming national and international partnerships to work on common solutions and develop viable economic strategies.
Al Tamimi’s insights were consistent with UN Secretary-General Antonio Guterres’ previous warnings on July 12 that the debt crisis in developing countries is threatening their development because governments spend more on debt repayment than they spend on health and education. UN Secretary-General stressed, during his presentation of the report on the status of global public debt, that 3.3 billion people now live in countries where debt interest payments are greater than expenditure on health or education.
According to the report, the global public debt reached an all-time high of USD 92 trillion in 2022, a five-fold surge from its levels in 2000. Developing countries account for about 30 percent of the total debt and their debts are growing faster than others, incurring greater debt service, due to the higher interest rates it pays. A total of 52 countries – almost 40 percent of the developing world – are in serious debt trouble. (MORE)
Source: Qatar News Agency