The World Economic Situation and Prospects
Food inflation remains a pressing issue in many developing countries.
Challenges facing developing economies
Nevertheless, many developing countries are expected to face persistent inflationary pressures, with one in five experiencing double-digit rates. High debt burdens and limited access to international financing will continue to hinder recovery.
Food inflation remains a pressing issue, with nearly half of developing countries experiencing rates above five per cent.
This has deepened food insecurity, particularly in low-income nations already grappling with extreme weather events, conflicts and economic instability.
The report warns that persistent food inflation, coupled with slow economic growth, could push millions further into poverty.
Critical minerals: opportunities and risks
Growing industrial demand for critical minerals, such as lithium and cobalt, presents both opportunities and risks.
For resource-rich developing countries, these minerals offer potential for growth, job creation and increased revenues to accelerate progress towards the 17 Sustainable Development Goals (SDGs).
However, the report warns that poor governance, unsafe labour practices and environmental degradation could undermine long-term benefits and exacerbate inequalities.
Calling for comprehensive policies to ensure sustainable extraction and equitable benefit-sharing, DESA chief Li Junhua emphasised: “Critical minerals have immense potential to accelerate sustainable development, but only if managed responsibly.”
Call for bold multilateral action
The report concludes with a call for bold multilateral action to address interconnected global crises, including debt, inequality and climate change.
Governments are urged to focus on investments in clean energy, infrastructure and critical social sectors such as health and education.
Stronger international cooperation is deemed essential for managing the risks and opportunities associated with critical minerals, ensuring that developing countries can benefit equitably and sustainably.