The world economy is facing severe headwindsamid weak growth prospects, elevated inflationand heightened uncertainties. A confluenceof factors -legacy effects of the COVID-19pandemic, the lingering war in Ukraine, theever-worsening impact of climate change andrapidly shifting macroeconomic conditions-are clouding the economic outlook, evenas the global picture shows slight signs ofimprovement. Persistently high inflation hasprompted the most aggressive interest ratehikes in decades, causing financial conditionsto tighten sharply and exacerbating debtvulnerabilities.
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