EXECUTIVE SUMMARY 3

GLOBAL GROWTH IS SUBDUED 4

  A. A Modest Growth Outlook, Sticky Inflation, and Financial Vulnerabilities are Testing Policy Trade-offs 4

  B. Risks are to the Downside Amid Uncertainty over the Growth Outlook 10

  C. Fragmentation in a Financially Globalized World Will Be Costly with Multifaceted Impacts 12

RESTORE PRICE STABILITY WHILE RAISING GROWTH PROSPECTS 15

  A. Macroeconomic Policy Must Deliver Durable Disinflation while Maintaining Financial Stability and Strengthening Inclusive Growth 15

  B. Structural Reforms Can Support Policy Objectives in the Near- and Long-Term 20

  C. Implementing Macroeconomic Policy and Structural Reform Recommendations would Deliver

Substantial Benefits 23

COOPERATE TO SOLVE GLOBAL CHALLENGES 26

  A. A Considered Approach to International Cooperation focusing on Global Public Goods is Essential to Reverse Geoeconomic Fragmentation 26

  B. Accelerate the Green Transition 27