Economics & Development

This statement, delivered by Lan Fo’an, Minister of Finance of the People’s Republic of China, to the 113th Meeting of the Development Committee on April 16, 2026, addresses the profound transformations shaping the global development landscape amid rising geopolitical tensions, protectionism, and slowing progress toward the Sustainable Development Goals. It underscores the imperative of true multilateralism, openness, and cooperation in preserving international rules and advancing inclusive global development, and reaffirms the World Bank Group’s pivotal role as a cornerstone of global economic governance. China commends the World Bank Group for strengthening its development financing capacity, operational effectiveness, and focus on jobs, resilience, and sustainable growth, and calls for continued commitment to poverty reduction and shared prosperity on a livable planet. The statement highlights peace and stability as foundational to development, encourages intensified support for countries affected by fragility, conflict, and violence, and emphasizes the strategic importance of middle‑income countries through differentiated financing, knowledge cooperation, and voluntary, rules‑based approaches to graduation. It supports placing job creation at the center of development strategies, fostering an enabling business environment, and leveraging innovation to bridge digital and green transitions. The statement further calls for timely global governance and shareholding reforms to enhance developing countries’ voice and representation, reaffirms China’s commitment to high‑quality development and green transition, and underscores China’s long‑standing partnership with the World Bank Group as an example of mutually beneficial multilateral cooperation aimed at delivering scalable and sustainable development solutions worldwide. Provide your feedback on BizChat

This statement was delivered by Arvils Aseradens, Minister of Finance of Latvia, on behalf of a Nordic-Baltic constituency comprising Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, at the 113th Meeting of the Development Committee on April 16, 2026. The statement opens by characterizing the current global environment as markedly more fragile and uncertain, shaped primarily by Russia's war of aggression against Ukraine and the ongoing conflict in the Middle East. These crises have inflicted severe humanitarian suffering while disrupting global energy and food systems and straining fiscal sustainability in developing nations. The constituency unequivocally condemns Russia's actions and reaffirms its unwavering support for Ukraine's sovereignty, while also welcoming the World Bank's use of dedicated mechanisms, such as the Trust Fund for Gaza and West Bank, to address impacts on Palestinian communities. On the institutional front, the Nordic-Baltic group affirms its strong political and financial commitment to the World Bank Group as the cornerstone of the multilateral development system, with particular emphasis on the centrality of IDA in responding to interconnected global shocks. They call for greater balance sheet leverage, a strengthened One WBG approach, and the catalytic use of public finance to crowd in private capital, especially in low-income and fragile and conflict-affected settings. The constituency also endorses the World Bank's FCV Strategy Refresh, stressing the importance of long-term, prevention-oriented engagement in fragile states in close partnership with the United Nations. The statement strongly endorses the World Bank's jobs agenda, calling for a focus on better jobs, ones that are fair, safe, productive, and inclusive, and emphasizes the need for an enabling environment grounded in macroeconomic stability, the rule of law, and effective institutions. Key development priorities highlighted include domestic resource mobilization through stronger tax systems and the fight against illicit financial flows; climate action, with support for the target of allocating at least 45 percent of Bank financing to climate objectives aligned with the Paris Agreement; gender equality and women's full economic participation; and digital transformation through secure infrastructure and the responsible harnessing of AI for productivity and job creation. On governance, the constituency reaffirms the Lima shareholding principles and calls for reforms that strengthen the voice and representation of low-income countries within the World Bank Group.

This statement, delivered by Enoch Godongwana, Minister of Finance of South Africa, on behalf of the constituency of Angola, Nigeria, and South Africa, to the 113th Meeting of the Development Committee on April 16, 2026, highlights the severe global and regional economic challenges facing emerging markets and developing economies amid escalating conflicts, heightened commodity price volatility, tighter financial conditions, and debt vulnerabilities, with particularly acute impacts in Sub‑Saharan Africa. It underscores that fiscal space constraints, disrupted investment flows, and limited policy buffers are threatening macroeconomic stability and risking reversals of hard‑won development gains. The statement strongly supports coordinated multilateral responses and commends the World Bank Group’s efforts to enhance agility through crisis response frameworks, streamlined procedures, and improved alignment with country‑owned development strategies. It welcomes progress on institutional reforms, the One WBG approach, and the renewed emphasis on job creation and structural transformation, while calling for greater scale and pace in infrastructure, energy, logistics, water, and digital connectivity to crowd in private investment. The constituency highlights the central importance of quality, productivity‑enhancing jobs—especially for youth and women—regional integration through the African Continental Free Trade Area, and leveraging digitalization and artificial intelligence to harness Africa’s demographic dividend. The statement also stresses the need for balanced climate action with equal focus on adaptation and mitigation, timely and predictable debt treatments, strengthened debt management capacity, and fairer governance and shareholding arrangements that protect the voice of low‑income and lower‑middle‑income countries. Overall, it calls for a recommitment to an inclusive, rules‑based multilateral system capable of delivering flexible, scaled, and long‑term development support to African economies in an increasingly uncertain global environment.

This statement, delivered by Alexey Overchuk, Deputy Prime Minister of the Russian Federation, to the 113th Meeting of the Development Committee on April 16, 2026, reflects on a global environment characterized by heightened uncertainty driven by economic fragmentation, climate change, food and energy insecurity, and rapid technological transformation. It emphasizes the growing need for coordinated multilateral action to build sustainable pathways for job creation, economic growth, and poverty reduction. The statement highlights how technological change is reshaping demand for resources and supply chains, intensifying reliance on regional integration, alternative payment systems, and secure trade routes amid shifting trust in the global financial system. It outlines Russia’s domestic policy focus on macroeconomic stability, inflation control, fiscal and debt management, a resilient labor market, and a business environment that avoids excessive regulatory burdens. The statement underscores Russia’s contributions to global energy and food security, including affordable energy supply, fertilizer exports, and cooperation on education, digital governance, health, and domestic revenue mobilization. Regional economic integration within the Eurasian Economic Union is highlighted as a catalyst for growth, labor mobility, and resilience. The statement supports the World Bank Group’s emphasis on jobs and a business‑enabling environment, tailored to country‑specific circumstances, and calls for greater focus on regional integration, property rights, tax systems, and value‑chain connectivity. It further stresses non‑discrimination, equal treatment of member states, transparent procurement, voluntary and flexible graduation policies, careful institutional reform, and shareholding reform aligned with the Lima Principles to reflect evolving global realities.

This statement, delivered by Shirley Botchwey, Secretary‑General of the Commonwealth, to the 113th Meeting of the Development Committee on April 16, 2026, underscores the central importance of creating an enabling environment for jobs as a foundation for inclusive growth, economic resilience, democratic strength, and renewed confidence in multilateral cooperation. It highlights the difficult global context marked by subdued growth, rising geopolitical tensions, trade fragmentation, and intensifying climate shocks, which are constraining investment and productivity and disproportionately affecting small and developing states. With over 2.7 billion people across its membership more than half under the age of 30 the Commonwealth emphasizes that generating decent and sustainable employment is essential to transforming demographic potential into long‑term prosperity. The statement stresses the need for reform of the international financial system to expand access to affordable, long‑term finance, particularly for small and climate‑vulnerable states, alongside sound macroeconomic management and strengthened domestic resource mobilization. It highlights the pivotal role of a thriving private sector, supported by clear regulation, effective institutions, adequate infrastructure, and expanded access to finance for small and medium‑sized enterprises. The statement also underscores the importance of trade integration, skills development, digital transformation, and green sectors in shaping future jobs, while placing inclusion especially for women, youth, and persons with disabilities at the center of job creation strategies. It concludes by reaffirming the Commonwealth’s commitment to strategic partnerships, including with the World Bank and IMF, to advance coordinated action that delivers decent work, resilience, and shared prosperity for all.

This statement, delivered by Gilbert F. Houngbo, Director‑General of the International Labour Organization (ILO), to the 113th Meeting of the Development Committee on April 16, 2026, highlights the growing fragility underlying the global economy despite headline indicators of resilience. It underscores that stable unemployment figures conceal deep structural challenges, including a global jobs gap exceeding 400 million, declining labour force participation, widespread informality, and persistent working poverty affecting hundreds of millions of workers. The escalation of conflict in the Middle East has compounded these vulnerabilities by triggering sharp increases in energy, food, and fertilizer prices, disrupting trade and supply chains, and intensifying inflationary pressures that disproportionately burden low‑income households, informal workers, migrants, and small enterprises. The statement warns that labour‑market adjustment is likely to occur through weakened hiring, falling real wages, deteriorating working conditions, and rising informality, risking long‑term setbacks to human development. It strongly supports the World Bank Group’s focus on jobs, while stressing that job quantity alone is insufficient and that job quality, rights, and protections must be central to recovery strategies. Emphasizing that social justice is inseparable from economic stability, the statement calls for preserving fiscal space for social protection and investment, embedding decent work in recovery and reconstruction, strengthening labour rights and social dialogue, and accelerating reforms to the international financial architecture. It reaffirms the ILO’s commitment to deepened cooperation with the World Bank Group to integrate job quality into development metrics and to promote inclusive, resilient, and democratic growth.

A major oil export disruption in FY25 triggered a contraction in real GDP and sharp currency depreciation. High inflation, reduced development aid, and arrears to civil servants eroded household consumption and raised extreme poverty. With oil exports restored, early FY26 shows tentative stabilization. The outlook remains fragile amid entrenched corruption, weak governance, and escalating domestic conflict, and the conflict in the Middle East.

GDP growth slowed to 2.1percent in 2025, down from 3.2 percent a year earlier, as momentum in private consumption and investment softened amid elevated inflation and political uncertainty. Industrial weakness persists. General elections could keep the fiscal deficit elevated in the near term, although public debt remains moderate. Growth is projected to gradually recover toward potential, reaching 3.2 percent by 2028.

GDP contracted for a seventh consecutive year in FY2025 amid persistent insecurity, which has displaced 1.4 million people. Hurricane Melissa compounded food insecurity and poverty, damaging crops. Following the dissolution of the Transitional Presidential Council, prospects hinge on the newly authorized Gang Suppression Force (GSF), progress toward elections planned for late 2026, and resolution of trade and migration policy uncertainties.

Growth accelerated to 7.6 percent in FY26, driven by private consumption and investment. Poverty has continued to decline since 2011, with lower-middle-income country poverty at 16 percent in 2023. Growth is projected to moderate to 6.6 percent in FY27, due to headwinds from higher oil, gas, and fertilizer prices caused by the conflict in the Middle East. Risks to the outlook hinge on the evolution of the conflict and related energy market disruptions.

The current conflict in the Middle East is expected to significantly affect Maldives, disrupting tourism and driving up import costs. In 2026, growth is projected to slow, inflation to rise, unemployment to increase slightly as service sector earnings fall, and poverty to increase with eroding real incomes. Foreign exchange (FX) liquidity pressures are intensifying, while buffers in the form of usable reserves remain low.

Following the 0.5 percent contraction in 2025, growth is projected at 0.9 percent in 2026, supported by the resumption of the Mozambique Liquefied Natural Gas (LNG)–TotalEnergies project. The recovery remains fragile amid fiscal pressures, foreign exchange shortages, and flood-related disruptions. Poverty is projected to stay high at 82 percent, amid weak non-extractive growth and limited job creation, with risks from climate shocks, fiscal slippages, and insecurity.