The Financing for Sustainable Development Report (FSDR) assesses progress in implementing the commitments and actions in the Addis Ababa Action Agenda. Global sustainable development prospects continue to diverge. Two years ago in the midst of the COVID-19 pandemic the Inter-agency Task Force warned of a global divergence that could lead to a lost decade for development. By 2022 these risks had materialized—a great finance divide was translating into a development divide. Over the past 12 months the war in Ukraine sharp increases in food and energy prices and rapidly tightening financial conditions further exacerbated challenges for many countries increasing hunger and poverty and reversing progress on the Sustainable Development Goals (SDGs). Despite some positive signs the global macroeconomic outlook remains highly uncertain and particularly bleak for many of the poorest and most vulnerable countries faced with growing debt service burdens and tight fiscal constraints. Delaying investment in transformation is thus not an option. The multiple crises can shorten the time horizons for decisions—by policymakers investors businesses and individuals. Delaying investments would put the 2030 targets out of reach and exacerbate financing and macroeconomic challenges down the line. Sustainable and productive investments today can transform and diversify economies and enhance resilience to shocks including inflationary supply-side shocks tomorrow. As laid out in the 2022 Financing for Sustainable Development Report such investments also enable countries to mobilize resources over time and better service debt. This is why the 2023 Task Force report focuses on sustainable transformations including a roadmap for governments along with changes in the way finance works.

This publication assesses progress in implementing the commitments and actions outlined in the Addis Ababa Action Agenda. It explores how the COVID-19-related global economic recession and financial turmoil are derailing implementation of the Agenda and achievement of the Sustainable Development Goals (SDGs). Even before the pandemic the 2020 Financing for Sustainable Development Report (FSDR) of the Inter-agency Task Force noted that there was backsliding in many areas. Due to the crisis global financial markets have witnessed heavy losses and intense volatility and the prospect of a new debt crisis is particularly worrisome. This report offers recommendations highlighting both immediate and longer-term actions including arresting the backslide to respond to the COVID-19 crisis.