Global growth is set to slow in 2023 to 2.1 percent.
Tight global financial conditions and subdued external demand will weigh on growth across emerging market and developing economies.
Downside risks include more widespread banking stress and tighter monetary policy.
Global co-operation is needed to bolster financial regulatory reform, mitigate climate change, and provide debt relief.
Central bank credibility remains critical for macro-economic stability.
Fiscal space can be gradually rebuilt through increased spending efficiency and domestic revenue mobilisation.
Reversing slowing potential growth will require reforms to foster physical and human capital, labor supply, productivity of services, and trade.
