World Economic Situation and Prospects as of mid-2023

The world economy is facing severe headwinds amid weak growth prospects, elevated inflation and heightened uncertainties. A confluence of factors – legacy effects of the COVID-19 pandemic, the lingering war in Ukraine, the ever-worsening impact of climate change and rapidly shifting macroeconomic conditions – are clouding the economic outlook, even as the global picture shows slight signs of improvement. Persistently high inflation has prompted the most aggressive interest rate hikes in decades, causing financial conditions to tighten sharply and exacerbating debt vulnerabilities.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Reduced Inequalities