Navigating economic headwinds

In the face of numerous upheavals over the past four years, the global economy has demonstrated unexpected resilience. Despite the swiftest surge in interest rates in four decades, major economies are largely emerging unscathed, devoid of the typical aftermath of high unemployment rates or financial crises. Global inflation is being managed without plunging the world into recession, a feat uncommonly achieved without triggering an economic downturn. The prospect of a “soft landing” appears increasingly plausible. However, looking beyond the next two years, the future appears bleak. By the end of 2024, the world will reach the midpoint of what was anticipated to be a decade of profound transformation, with aims of eradicating extreme poverty, eliminating major communicable diseases, and significantly reducing greenhouse gas emissions. Instead, a grim milestone awaits — the weakest global growth performance in any five-year period since the 1990s, with one in every four developing economies experiencing increased poverty compared to pre-pandemic levels.