The weaknesses of our economic system are brutally exposed by a multitude of crises, culminating in a record-high inflation, we write in our in Advanced Economies Outlook. This polycrisis is also a new era for the economy and financial markets and is the background for our 2023 forecast. We are in for a global growth slowdown, spurred by recessions in the UK, the eurozone and eventually the US, although we will probably escape a global recession.
In most emerging countries growth will slow to below trend. Inflation will peak in many countries but will remain above target. And although some have weathered the storm quite well, most emerging countries are not resilient enough to adapt to and endure future shocks. Read our Emerging Markets Outlook.
The rising inequality and the ongoing transgressions of our planetary boundaries ask for immediate policy action. This requires an integrated and coordinated approach that steers towards a more resilient system: one supporting an equitable society with healthy ecological conditions.
The nature of the polycrisis we are in, its consequences, and how to solve it are the topics in our long-term outlook. In the current circumstances, we need a new perspective on our society and our economic system, and new solutions. Creating a resilient economy to make the necessary transformation is now more critical than ever.