Statement by Dr. Muhammad Al-Jasser - President of the Islamic Development Bank Group - 109th Meeting of the Development Committee

Jul 19, 2026

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Statement by Dr. Muhammad Al-Jasser, President of the Islamic Development Bank Group, delivered at the 109th Meeting of the Development Committee in Washington, DC on April 19, 2024. The statement highlights the need for coordinated action amid polycrisis conditions, weaker global growth, rising macroeconomic vulnerabilities, and stalled progress in poverty reduction. It addresses inflation, food-price pressures, debt sustainability concerns, financing tightening, and knock-on risks to financial stability, while also emphasizing climate change urgency and the challenge of funding a just transition, particularly for low-income and vulnerable economies.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

Weakening global economic prospects

Macroeconomic vulnerabilities and poverty reduction

Debt sustainability and stability risks

Addressing climate change and fostering just transition

Climate risks and transition financing

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committeeof the Boards of Governors of the Bank and the Fundon theTransfer of Real Resources to Developing Countries) ONE HUNDRED AND NINTH MEETINGWASHINGTON,DC-APRIL19,2024 Statement by Dr.Muhammad Al-JasserPresident Islamic Development Bank (IsDB)Group DC/S/2024-0001 April 19,2024 Statement by Dr.Muhammad Al-JasserPresidentIslamic Development Bank(IsDB)Group 109th Meeting of the Development Committee April 19,2024 Washington,DC On behalf of the Islamic Development Bank Group,I would like to express my appreciation to the WorldBank and International Monetary Fund (IMF)for the invitation to participate in the 109ᵗmeeting of theDevelopment Committee. In this time of polycrisis,the development community needs to combine efforts and build synergies toaddress critical challenges that are adversely impacting the resilience of the global economy.Weakeninggrowth prospects and rising macroeconomic vulnerabilities resulted in increased expectations on theresponsiveness of multilateral development banks(MDBs)to help their member countries navigate thesecrises. # Weakening global economic prospects Based on current trends,the world economy is heading toward a decade of significant growth slowdown.Global economic growth is projected to record its lowest average of the last five decades.Recovery fromthe pandemic-led global recession in 2020 was hampered by geopolitical shocks and a surge in inflationthat triggered monetary tightening across advanced economies.These adverse economic conditions causeda significant setback in income generation and poverty reduction.As of2023,about half of the low-incomecountries have a lower level of GDP per capita than before the pandemic.Furthermore,nearly 700 millionpeople stilllive in extreme poverty across the world,indicating that progress in reducing extreme povertyhas stalled since 2019. Headwinds hitting the global economy also have adverse impacts on IsDB member countries(MCs)as agroup,with its average economic growth likely to fall during this decade to less than four percent,its lowestsince the 1980s.This is likely to hinder poverty reduction efforts in our member countries,where extremepoverty is more acute.About 11.3 percent ofour member countries'population(around 230 million people)are living below the international poverty rate of $2.15 per day.This is notably higher when compared to aworld average of 8.6 percent.Furthermore,a widening income gap between regional groupings,especiallybetween Asia and Sub-Saharan Africa,because of the growth differential is also expected. Against the backdrop of three years of lost progress in poverty reduction,there has been a concurrentbuildup of macroeconomic imbalances,raising concerns on debt sustainability among the most vulnerableeconomies. The challenges of macroeconomic stability and debt sustainability In the aftermath of the pandemic crisis,the escalation of geopolitical tensions and conflicts has exacerbatedsupply chain disruptions and volatility in commodity markets.For economies highly dependent on trade inprimary products,which is the case of most of the IsDB member countries,this increased volatility hasserious implications for their macroeconomic stability. Inflation rates are anticipated to decrease globally,dragged down by tight monetary policies along withdeclining energy prices.However,they remain elevated across IsDB member countries with double-digitinflations rates in about one-third of the MCs. High inflation,especially high food prices,disproportionately affects the poor and has become a majordriver of social unrest in many instances.On the other hand,the abrupt shift towards monetary tighteningas a means for taming inflation,especially in Advanced Economies,has triggered capital outflows,currencydepreciation,and increased the cost of servicing external debt for many emerging markets and de

FAQs

What key economic issues does Dr. Muhammad Al-Jasser highlight in the statement?

He emphasizes weakening global growth prospects, rising macroeconomic vulnerabilities, stalled poverty reduction, elevated inflation—especially food prices—and growing debt sustainability concerns.

How does the statement describe the impact of inflation and monetary tightening?

It notes that high inflation disproportionately harms the poor and that shifts toward monetary tightening can trigger capital outflows, currency depreciation, and higher costs of servicing external debt in many emerging and developing economies.

What is the statement’s view on debt sustainability and financial stability risks?

It argues that tighter financing and mounting debt vulnerabilities can threaten financial stability beyond the capacity of low-income countries, with global interconnectedness creating ripple effects across the broader system.

Why does the statement focus on climate change and a just transition?

It cites the urgency of reaching 1.5°C warming projections and the ongoing risks from climate-related shocks, while stressing that funding the transition to lower emissions remains a major challenge for low-income and vulnerable economies.

Jul 19, 2026

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