UN Report: Developing Countries Face $4 Trillion Annual Gap for Sustainable Development Goals
The United Nations’ Department of Economic and Social Affairs has revealed that developing countries are facing the worst medium-term economic outlook in a generation. According to the Sustainable Development Goals (SDG) Report 2024, these countries need an additional $4 trillion per year to meet their SDG targets.
India’s Sherpa Amitabh Kant emphasized the need for new financing instruments to achieve these goals during a pre-G20-summit press conference last year. The SDG investment gap represents the shortfall in funding required to meet the 2030 Agenda goals.
The report states that economic growth in half of the world’s most vulnerable countries is now slower than in advanced economies for the first time this century. This trend threatens to reverse progress towards income equality among countries. Additionally, low- and middle-income countries are experiencing unprecedented levels of external debt.
The 2024 Financing for Sustainable Development Report (FSDR) indicates that developing countries alone face a $2.5 trillion annual funding gap. Despite reaffirmed pledges, progress has stalled or reversed due to the lingering impacts of COVID-19, conflicts, climate shocks, and economic turmoil. These factors have exacerbated existing inequalities, pushing 23 million more people into extreme poverty and causing over 100 million more to suffer from hunger in 2022 compared to 2019.
The report highlights that the funding gap is more severe in low- and lower-middle-income countries, where only 35% have sufficient funding, compared to 11% of high-income countries. Forty-five countries or areas received funding from donors, with half being low- and lower-middle-income countries.
