Gap between rich and poor countries widening, UN report says

The gap between wealthy and poorer nations is widening as major commitments to reform the global financial system remain largely unfulfilled, according to a new United Nations report released ahead of next week’s meetings of the International Monetary Fund (IMF) and the World Bank in Washington.

The findings come from the 2026 Financing for Sustainable Development Report , which reviews progress on the Seville Commitment adopted in Seville, Spain , last year to close a USD 4 trillion annual financing gap required for developing nations to achieve the UN’s Sustainable Development Goals by 2030 .

However, the report warns that financing trends are moving in the wrong direction as falling aid, rising borrowing costs and geopolitical tensions strain poorer economies. Li Junhua , the UN undersecretary-general for economic and social affairs, said global rivalries are increasingly shaping economic policies and limiting financing for developing countries.

The report highlights rising trade barriers , climate-related shocks and weakening international cooperation as factors widening the development gap. Average tariffs on exports from the least developed countries rose from 9 per cent to 28 per cent in 2025 , while tariffs affecting developing nations excluding China increased from 2 per cent to 19 per cent .

Official development assistance has also declined sharply. Twenty-five countries cut aid in 2025 , causing a 23 per cent global drop , the largest annual fall on record. The United States recorded the steepest decline with a 59 per cent reduction , and aid could fall another 5.8 per cent in 2026 .

The report notes that debt servicing in developing countries has reached a 20-year high , leaving many governments with limited resources for development spending.

The global disparity remains stark. Wealthier economies dominate global finance, while many of the poorest countries such as South Sudan and Burundi rank among the lowest in income levels. At the other end, high-income economies like Luxembourg and Singapore remain among the richest by income per person.

India reflects this contrast. While it is among the world’s largest economies overall, its per-capita income ranking is around 124th globally , highlighting the income gap between advanced and developing economies.

IMF managing director Kristalina Georgieva said the global outlook has darkened due to the Iran conflict, while UN Secretary-General Antonio Guterres has called for reforms to global financial institutions that he says often favour richer nations.

The UN says implementing the Seville Commitment remains the best hope to narrow the widening gap between the world’s richest and poorest countries.