Developing nations fret over recovery

The G24: Economic recovery remains in doubt

David Schepp BBC News Online North America Business Reporter

Finance ministers of the Group of 24 (G24) developing nations have said the recent global economic recovery could be derailed by the crisis in the Middle East.

Ciroma: Concern over fallen commodity prices

Speaking ahead of a meeting of the World Bank and International Monetary Fund (MF) this weekend, the G24 ministers also expressed "grave concern at the loss of innocent lives and the catastrophic situation in the Palestinian territories".

Incursions by Israel in recent weeks have left several towns within Palestine decimated, throwing into question the stability of the region and forcing world oil prices higher.

The finance ministers, who represent developing countries within Latin American, Asia and Africa, called for international cooperation to avoid undue oil-price volatility, in a statement issued shortly after their meeting on Friday in Washington.

They said the rise in oil prices is costly both to producing and consuming nations.

Lack of trade

The Group of 24 statement also noted that depressed commodity prices had weakened growth and export performance among developing countries, and had "undermined the fight against poverty as well as financially sustainability".

Rock-bottom prices for goods such as sugar, coffee and rice have damaged the economies of many commodity-dependent developing nations.

IMF and World Bank officials speaking earlier in the week also expressed concern over falling commodity prices and lack of trade.

Speaking on Friday, World Bank President James Wolfensohn said depressed commodity prices have had the effect of a "silent hurricane" on Latin American countries.

On Wednesday, IMF Managing Director Horst Koehler said the lack of international trading partners with Latin American nations makes them especially vulnerable to downturns in the world economy.

The G24 also noted other impediments to worldwide economic growth, including continued weakness in Japan and slow growth in Europe.

The decline in savings rates in several advanced economies, especially the United States, also puts the worldwide recovery at risk, the group said.