Agreements taking shape at a faster pace are reducing uncertainty for countries and investors.
New AI Preparedness Index Dashboard tracks 174 economies based on their digital infrastructure, human capital, labor policies, innovation, integration and regulation
19 countries in the Middle East and Central Asia are exploring issuing a CBDC
The AI transition will require stronger social safety nets, investment in education, and tax systems that support human workers and mitigate inequality
Policymakers should prioritize steps toward greater economic resilience such as strengthening government finances and revitalizing economic growth prospects.
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The regional outlook has strengthened as price pressures have moderated, although China’s property market correction and geoeconomic fragmentation remain key risks.
More data, analysis and dialogue are needed to avoid costly mistakes
Without ambitious steps to enhance productivity, global growth is set to fall far below its historical average
The magazine publishes insights on international finance, economics, & development.
AI will affect almost 40 percent of jobs around the world, replacing some and complementing others. We need a careful balance of policies to tap its potential
Generative AI has introduced tantalizing new possibilities. Yet the initial excitement surrounding AI has given way to genuine and growing concerns. This issue is an early attempt to understand AI’s implications for growth, jobs, inequality, and finance.
Careful calibration of spending and tax policies can reduce inequality caused by automation.
The decline of inflation could be stalling in some economies
Greater digitalization and heightened geopolitical tensions imply that the risk of a cyberattack with systemic consequences has risen
Rapid growth of this opaque and highly interconnected segment of the financial system could heighten financial vulnerabilities given its limited oversight
Supervisors in many countries face conditions that limit their effectiveness. Raising the bar requires independence with clear mandates, enhanced powers, greater resources, and more effective approaches.
Elevated borrowing costs are adding to risks that some companies may default on their debt as central banks keep interest rates higher for longer to contain inflation
NBFIs have emerged as key players in the financial sector, and global financial stability could hinge on their resilience as policy is tightened to tackle high inflation
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Some lenders in the region may be vulnerable to a combination of higher interest rates, corporate sector stress, and liquidity pressures
New tool offers a chance to improve transparency and safeguard independence
Despite sharp monetary policy tightening, financial conditions have eased around much of the globe, posing a challenge for central banks
Climate Change Indicators Dashboard shows that avoiding physical damage from climate change can have sizable benefits
Read the latest insights into country and regional economic issues.
International cooperation is more important than ever because no country can address climate change by itself
Panama’s drought shows how trade disruptions from climate extremes can reverberate around the world
Coordinated climate policies can spur innovation in low-carbon technologies and help them spread to emerging market and developing economies
Higher interest rates have exposed vulnerabilities in some banks, and many more would be weakened by a prolonged period of tight monetary policy
Tighter monetary policy is starting to work. Alternatives would be more costly.
Expectations increasingly drive inflation dynamics. Improvements in monetary policy frameworks can better inform people’s inflation expectations and thereby help reduce inflation at lower output cost.
Central banks may keep interest rates higher for longer than currently priced; given investors’ benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Higher prices so far mostly reflect increases in profits and import costs, but labor costs are picking up
But there are trade-offs between price and financial stability during times of stress, especially when inflation is high