The report, which assesses the implementation of the plan adopted in Seville, Spain, last June to reduce the gap and achieve the UN's development goals by 2030, was released ahead of the spring meetings of the International Monetary Fund (IMF) and the World Bank next week in Washington. These two institutions are the main global financial actors tasked with promoting economic growth.
IMF Managing Director Kristalina Georgieva said the Fund was prepared to revise upward its global growth forecasts, but the Iran war has further clouded the prospects for the world economy.
Li Junhua, UN Deputy Secretary-General for Economic and Social Affairs, said geopolitical tensions are further complicating developing countries' efforts to attract financing.
"This is an exceptionally dangerous time for international cooperation, as geopolitical considerations increasingly shape economic relations and financial policies," he warned.
The report also cites growing trade barriers and repeated climate shocks as factors deepening the gap.
At last year's conference in Seville, leaders from many countries around the world, but not the United States, unanimously adopted the so-called Seville Agreement, which aims to close an annual $4 trillion financing gap for development. The document calls for a significant increase in investment in developing countries and reform of the international financial architecture, including the World Bank and the IMF.
UN Secretary-General António Guterres has repeatedly called for fundamental changes in the operations of these two institutions, arguing that the IMF has favored rich over poor countries, while the World Bank, he says, has failed in its mission, especially during the COVID-19 pandemic, after which dozens of countries were left deeply indebted. His assessments align with those of external critics who point to frustrations in developing countries over the dominance of the U.S. and European allies in decision-making at these financial institutions.
The UN report on the implementation of the Seville Agreement states that it represents the "best hope" for closing the widening financing gap.
However, in 2025, Li noted, 25 countries reduced development aid to poorer nations, leading to an overall decline of 23 percent compared to 2024, the largest annual contraction ever recorded. The largest drop, 59 percent, was recorded in the United States, he said.
Based on preliminary data, Li added that an additional decline of 5.8 percent is expected in 2026.
According to the report, tariffs, including those imposed during the Donald Trump administration, have had a huge impact on developing countries. Average tariffs on exports from the world's poorest countries rose from 9 to 28 percent in 2025, while for developing countries, excluding China, average tariffs increased from 2 to 19 percent.