In the second of a two-part assessment of the global economic outlooks ahead of the Commonwealth Finance Ministers Meeting in Washington on 13 October 2025, Dr Thomas Munthali, Head of Economic Policy and Small States at the Commonwealth Secretariat, outlines how member countries can best respond.
The Commonwealth response
Resilience is not just a buzzword but a survival strategy, and the Commonwealth has unique strengths to draw upon—from its shared institutions to its 21% lower cost of intra-bloc trade, projected to reach $2 trillion by 2030. To turn today’s headwinds into opportunity, members must secure fairer and more affordable finance by reforming the global financial system while leveraging on available resources and mobilising domestic revenues through modernised tax systems, digital innovation, and curbing illicit flows.
The Commonwealth is well-positioned to champion reforms of the global financial architecture that is more inclusive, equitable, and responsive to the needs of its member countries, particularly small and vulnerable states. By leveraging its unique convening power, technical expertise, and the collective voice of 56 diverse members, the Commonwealth can drive advocacy for a financial system that delivers timely, affordable, and sustainable financing for development.
This advocacy effort should focus on concrete outcomes – such as enhancing debt sustainability, scaling up climate and development finance, and strengthening access to concessional resources – ensuring that the global financial architecture is truly fit-for-purpose in accelerating progress towards resilient economies and prosperity.
Relatedly, debt sustainability and climate resilience must go hand-in-hand with fiscal buffers, debt-for-resilience swaps, and stronger domestic debt markets underpinned by regional cooperation and sustainable financing instruments.
Harnessing technology such as the Commonwealth Meridian can transform debt transparency and policymaking, while investment in green industries, digital economies, and regional value chains will drive diversification and inclusive growth, particularly for women- and youth-led enterprises.
Finally, stronger collective action—through central bank coordination, financial resilience platforms, and pooled technical assistance—will be critical. With the Commonwealth Secretariat convening and guiding this collaboration, members can build the capacity to withstand shocks and unlock new pathways for sustainable, inclusive prosperity.
Conclusion
The upcoming Commonwealth Finance Ministers Meeting on 13 October 2025 in Washington DC on the sidelines of the annual meetings of the International Monetary Fund and World Bank, marks a pivotal moment. With aid shrinking, trade weakening, and debt burdens mounting, members must act decisively to chart a resilient path forward.
Amid global uncertainty, resilience will not happen by default—it will require bold reforms, stronger cooperation, and a united voice in shaping a fairer global economic order. The storm is real, but so too is the opportunity for Commonwealth economies to emerge stronger, smarter, and more connected than ever before.
Dr Thomas Munthali is Adviser and Head of Economic Policy and Small States at the Commonwealth Secretariat.
