Homi Kharas and Charlotte Rivard
Strong headwinds suggest that 2023 will be a difficult year for global economic development. Avoiding setbacks will be at least as important as making renewed progress. Developing countries will continue to face overlapping crises with little to no fiscal space for addressing them. In the short term, debt and humanitarian distress are pressing threats, while in the longer term, climate action and spending on sustainable development goals (SDGs) remain priorities. If ignored, any one of these areas could have serious consequences for millions of people. If a critical mass of countries were to be adversely affected, it could create systemic failure in the global capacity to provide safety nets for people and resilience for economies.
