NEW YORK, September 27, 2025: The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rebeca Grynspan, has urged global leaders attending the 80th session of the United Nations General Assembly (UNGA80) to take immediate action to reduce debt costs, stabilize trade policies, and increase investment in digital infrastructure to avert what she described as a mounting development crisis. Grynspan warned that the global economic environment is under significant strain, as rising tariffs, record debt payments, and eroding international trust are hindering development, particularly in vulnerable economies.
She cited a sharp increase in tariffs imposed by major economies this year, with average rates climbing from 2.8 percent to over 20 percent. This escalation, she said, is creating uncertainty that deters investment and slows economic growth. The UNCTAD chief emphasized that the impact of these pressures is falling disproportionately on developing countries. Addressing delegates during the high-level week of UNGA80, she reported that developing nations paid a record $921 billion in interest on external debt in 2024.
An estimated 3.4 billion people now live in countries that allocate more public spending to debt servicing than to healthcare or education. “This is not a debt crisis, it is a development crisis,” Grynspan said, noting that more than 50 developing economies now devote at least 10 percent of their tax revenues to interest payments. This fiscal burden, she said, severely limits government capacity to invest in essential services and infrastructure, forcing many to make difficult decisions between meeting debt obligations or addressing social needs.
Tariff hikes disrupt growth across vulnerable economies
Grynspan also highlighted the widening gap in digital access and capacity. In 2023, developing countries exceeded $1 trillion in digital services exports, contributing to a global market valued at $4.5 trillion. However, this growth remains uneven. In the least developed countries, only one in three people is online, and digital services represent just 20 percent of total exports. To address this imbalance, she called for targeted investment in digital infrastructure, data systems, and workforce training.
She stressed that digital transformation must promote inclusive development, not exacerbate existing inequalities. She also noted that the expansion of artificial intelligence, projected to grow 25 times over the next decade, will significantly influence trade, employment, and innovation. Despite the economic challenges, Grynspan underscored that multilateral engagement remains active. The presence of more than 150 heads of state and government at UNGA80, she said, demonstrates a continued commitment to international cooperation.
Geneva summit set to continue economic development talks
She described the current situation as a pivotal moment in which global outcomes will be shaped by decisions made today. UNCTAD is set to advance these priorities during its 16th ministerial conference, scheduled for October 20-23 in Geneva. The conference will focus on practical measures to improve debt sustainability, support resilient trade frameworks, and expand equitable access to digital opportunities. UNGA80 has brought renewed urgency to global development concerns, with institutions calling for coordinated action to stabilize financial systems, safeguard public investments, and ensure that all economies have the tools to achieve sustainable growth. – By Content Syndication Services.