Despite government budget strains, countries should prioritize investment in schools with the help of the international community
As the region’s population ages, boosting labor force participation and productivity will be key to aid economic growth and raise living standards.
Governments should stay the course on fiscal consolidation amid mounting debt.
The decline of inflation could be stalling in some economies
Policymakers should prioritize steps toward greater economic resilience such as strengthening government finances and revitalizing economic growth prospects.
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Without ambitious steps to enhance productivity, global growth is set to fall far below its historical average
The G20 has an important opportunity to shift focus from firefighting against successive shocks to a medium-term agenda that supports strong, sustainable, balanced, and inclusive growth.
Policy focus must shift to repairing public finances and improving medium-term growth prospects
It can be tempting for countries to turn to industrial policy, but a policy mix supporting innovation more broadly can help boost economic growth
Following exceptional pandemic support, governments should foster disinflation and financial stability while protecting the most vulnerable and safeguarding public finances
Countries should prioritize protecting the vulnerable through targeted support while keeping a tight fiscal stance to help fight inflation
More progressive taxes with fewer exemptions would help governments pay for immediate spending priorities and make societies fairer.
Greater digitalization and heightened geopolitical tensions imply that the risk of a cyberattack with systemic consequences has risen
Rapid growth of this opaque and highly interconnected segment of the financial system could heighten financial vulnerabilities given its limited oversight
Supervisors in many countries face conditions that limit their effectiveness. Raising the bar requires independence with clear mandates, enhanced powers, greater resources, and more effective approaches.
Elevated borrowing costs are adding to risks that some companies may default on their debt as central banks keep interest rates higher for longer to contain inflation
NBFIs have emerged as key players in the financial sector, and global financial stability could hinge on their resilience as policy is tightened to tackle high inflation
AI will affect almost 40 percent of jobs around the world, replacing some and complementing others. We need a careful balance of policies to tap its potential
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Careful calibration of spending and tax policies can reduce inequality caused by automation.
Global principles on data policy can help level the playing field while addressing financial stability and inclusion, competition, and privacy.
New technologies like artificial intelligence, machine learning, robotics, big data, and networks are expected to revolutionize production processes, but they could also have a major impact on developing economies.
Climate Change Indicators Dashboard shows that avoiding physical damage from climate change can have sizable benefits
Investment of up to 4 percent of GDP annually is needed to ensure climate resilience and meet emissions reduction targets
International cooperation is more important than ever because no country can address climate change by itself
Panama’s drought shows how trade disruptions from climate extremes can reverberate around the world
Coordinated climate policies can spur innovation in low-carbon technologies and help them spread to emerging market and developing economies
A broad mix of policies is needed to unlock the necessary private capital in emerging market and developing economies and ensure a positive climate impact
Higher interest rates have exposed vulnerabilities in some banks, and many more would be weakened by a prolonged period of tight monetary policy
Tighter monetary policy is starting to work. Alternatives would be more costly.
Expectations increasingly drive inflation dynamics. Improvements in monetary policy frameworks can better inform people’s inflation expectations and thereby help reduce inflation at lower output cost.
Central banks may keep interest rates higher for longer than currently priced; given investors’ benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Higher prices so far mostly reflect increases in profits and import costs, but labor costs are picking up
But there are trade-offs between price and financial stability during times of stress, especially when inflation is high
