EXECUTIVE SUMMARY  3

ASSESSING PROGRESS TOWARD STRONG, SUSTAINABLE, BALANCED, AND INCLUSIVE GROWTH  4

A. The growth outlook remains mediocre and uncertain  4

B. Sustainable growth faces challenges  8

C. Imbalances persist  11

D. Attaining inclusive growth remains a challenge across country groups  16

POLICY CHALLENGES  17

A. Macroeconomic policies must ensure price and financial stability while bringing down still-high debt levels  17

B. Structural reforms are urgently needed to lift medium-term growth  23

C. Recommended policies can drive strong and sustainable growth, with positive spillovers to lower external imbalances  25

D. International cooperation is needed to improve economic outcomes  28

ANNEX I. CONCEPTS, DEFINITIONS, AND MEASUREMENT  33

ANNEX II. DEMOGRAPHICS AND SSBIG  38

ANNEX III. INTRODUCING THE NEW SSBIG HEATMAPS  42

ANNEX IV. CHANGES TO SIMULATIONS OF IMPACTS OF STRUCTURAL REFORMS  43

References  44