The global economy faces strong headwinds as the Covid-19 pandemic entered its third year.
The Omicron variant has led to renewed mobility restrictions in many countries and increased labour shortages.
Supply disruptions still weigh on activity and are contributing to higher inflation, adding to pressures from strong demand and elevated food and energy prices.
Moreover, record debt and rising inflation constrain the ability of many countries to address renewed disruptions.
Last month, the International Monetary Fund (IMF) released projections indicating that global growth is expected to slow from 5.9% in 2021 to 4.4% in 2022. This is half a percentage point lower than the October 2021 forecast.
Alongside this deceleration, many economists believe persistent inflation will partially erase economic gains, with the expectation of rising interest rates slowing investment.
On top of this, 60% of low-income countries are in debt…
