The global economic context and its implications for sustainable development

Risks to the global economy have begun to materialize, leading to modest downgrades in growth projections by members of the Inter-agency Task Force on Financing for Development. Global growth remains steady, but is projected to have now peaked, with economic activity expected to continue expanding at about 3 per cent per year. Global growth is projected to remain uneven across regions and countries. There is some good news: investment has gained strength in some countries and regions, particularly in East and South Asia, which also have large populations of poor people; inequality within many developing countries is declining; and prices on carbon markets are slowly recovering due to policy changes. There is also growing interest in sustainable and impact investing (see chapter III.B). Yet, financial markets are volatile, the trade system is in crisis, wage shares are declining which is linked to economic concentration increasing, and risks of debt distress have increased. Carbon emissions have also begun to rise again. At this trajectory, Member States of the United Nations will not be able to meet the aspirations of the 2030 Agenda for Sustainable Development, with many being left behind.

Sustainable Development Goals:

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