International Monetary Fund data shows the global economy has stabilized since the pandemic shock four and a half years ago. Inflation has largely eased, though rates remain higher in developing and emerging markets than in advanced economies. Global gross domestic product held steady, bolstered by economic growth in the U.S. and Asia, while projections for commodity-dependent economies in the Middle East, Central Asia and sub-Saharan Africa have been revised downward.
Economists are now focused on implementing the next phase of recovery, which demands tighter fiscal policies and structural reforms to boost productivity and sustain growth. They also urged governments to address demographic challenges affecting labor forces. Each of these steps risks fueling renewed political and social pressures.
The Geopolitics of the American President