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Navigating Economic Perfect Storms

The global economy has been beset with a combination of supply and demand shocks that has generated stagflationary pressures and greater debt distress. But, owing to sound countercyclical policy responses and other factors, a few economies have managed to sustain growth.

JAKARTA – During the opening of the summit of G20 finance ministers and central-bank governors on October 12, 2022, I warned that the world is facing increasing and compounding risks from high inflation, weak growth, energy and food insecurity, climate change, geopolitical fragmentation, and rising debt distress. Low-income countries will bear the highest burden, but also middle-income and even advanced economies face the prospect of substantial pain.

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