Global Economy News
LAST UPDATE: June 27, 2025
G20 president S.Africa warns global turmoil hurts poorer nations
South Africa’s G20 president (Foreign Minister Ronald Lamola) cautioned that growing global fragmentation—from proxy conflicts, economic decoupling, and geopolitical tensions—is disproportionately harming poorer nations. He urged the G20 to promote peace through de-escalation and uphold solidarity, climate resilience, and debt relief for the Global South.
Insight
The message reflects South Africa’s intent to steer the G20 agenda toward addressing challenges facing developing countries. It positions the G20 presidency as a platform to amplify Southern voices on climate action, debt, and multilateral cooperation.
Africa must pivot from aid to trade: WTO
A senior WTO official, speaking in Sun City, South Africa, urged African nations to shift focus from aid dependence toward boosting trade and investment. He noted rising donor defense budgets may reduce aid flows, underlining trade as more sustainable.
Insight
The statement aligns with recent U.S. policy shifts favoring “trade, not aid.” It underscores a broader trend toward empowering Africa through commerce rather than aid, though success depends on strengthening trade infrastructure, regulations, and diversified supply chains.
WTO trade barometer rises, but slowdown expected later in the year
The WTO’s Goods Trade Barometer rose to 103.5, signaling above-trend early‑2025 trade driven by front-loaded orders ahead of tariffs. However, declining new export orders suggest growth may slow.
Insight
While the initial surge provides a boost, the warning of weakening export momentum highlights fragility in global trade. Protectionist pressures and geopolitical uncertainty may dampen activity later this year.
Guterres says UN’s founding principles under unprecedented attack
On the 80th anniversary of the UN Charter, Secretary‑General António Guterres condemned breaches of international law and selective adherence to the Charter, warning that attacks on civilian protections, sovereignty, and humanitarian norms are at unprecedented levels.
Insight
Guterres’ remarks are a stark wake‑up call to the UN community. His emphasis on not treating the Charter as optional underscores the erosion of global norms and the urgent need for collective recommitment to multilateralism.
UN climate chief warns ‘lot more to do’ before COP30
UN climate chief Simon Stiell urged governments to accelerate climate negotiations ahead of COP30 (scheduled Nov 10–21 in Belém, Brazil), stressing the need to go “further, faster, and fairer” to maintain the 1.5°C target. He noted recent technical sessions revealed much work remains.
Insight
Stiell’s warning emphasizes the tightening timeline for meaningful climate action. Hosting COP30 in the Amazon underscores impending regional risks, and his call for equity and speed highlights the need for both ambitious emissions cuts and enhanced finance for vulnerable countries.
Countries agree 10% increase for UN climate budget
Nearly 200 countries attending UN climate negotiations in Bonn agreed to raise the core UNFCCC budget by 10% for 2026–2027, boosting it to €81.5 million. China’s contribution increases from 15% to 20%, while the U.S. remains the largest contributor at 22%, though its formal attendance was absent. Bloomberg Philanthropies pledged to cover the U.S. share. Senior UN climate official Simon Stiell welcomed the agreement as a strong signal of sustained global commitment, especially amid budget reductions in other UN bodies. (reuters.com)
Insight
This decision reflects a renewed collective determination to support coordinated international climate action, even as wider UN funding faces cuts. It highlights China’s growing leadership and the critical role of private donors like Bloomberg Philanthropies in compensating for the U.S.’s reduced formal engagement. The strengthened budget equips the UNFCCC to better coordinate efforts ahead of COP 30 in Brazil.
