The global economic outlook for 2023 appears subdued, as a report projects a slowdown in world economic growth from 3% in 2022 to 2.4% in the coming year, with little indication of a robust rebound. This deceleration is expected to affect most regions, although Brazil, China, Japan, Mexico, and Russia are expected to outperform the trend, albeit without strong growth prospects. Inflation, which had surged in late 2022, is gradually receding but remains a persistent concern, primarily due to the gradual alleviation of supply-side pressures.

Attempts to address inflation through tighter monetary policy have shown limited effectiveness, and they have been associated with increased inequality and diminished investment opportunities. Concurrently, the rising cost of living and stagnant wage growth are placing considerable strain on household budgets worldwide. Furthermore, economic inequality, particularly pronounced in developing countries, is exacerbated by the effects of monetary tightening in advanced economies, posing a substantial challenge that threatens to impede the fragile economic recovery and the achievement of sustainable development goals (SDGs) on a global scale.