The global economy is stagnating, with growing socio-economic inequality and rising public debt limiting the ability to achieve the Sustainable Development Goals (SDGs).

This is stated in the new UNCTAD report on international trade and development.

The organization estimates that global economic growth will slow from 3% in 2022 to 2.4% in 2023. The decline in global inflation is a consequence of weakening supply pressure. Tightening monetary policy does little to reduce prices; on the contrary, it leads to a deterioration in investment prospects. More than 57% of total external government debt is in developing countries, and some 3.3 billion people live in countries that spend more on interest payments than on education or health care.

UNCTAD calls for global financial reforms, more pragmatic national policies to combat inflation, inequality and the sovereign debt crisis, and stronger oversight of key markets. To achieve financial stability and promote economic development, it is necessary: a balanced combination of fiscal and monetary measures to stimulate demand, attracting international capital to finance sustainable projects in developing countries, creating a new mechanism for sovereign debt restructuring and long-term financing.