Goal 1: No Poverty

The lingering war in Ukraine has been weighing on global economic activity since early 2022, undermining post-pandemic recovery. The initial impact of the conflict on energy and commodity prices appears to have waned, although some risks on the supply side may re-emerge, and challenges to Europe’s energy security remain.

Amid health, climate, food security and geopolitical crises, strengthened and effective multilateral cooperation will remain critical to stimulate growth, support the most vulnerable and put the world economy on track towards sustainable development.

Inflation is rising in many developing countries, driven by higher energy and food prices, supply chain disruptions and, in some cases, release of pent-up demand. Many central banks have responded with significant interest rate hikes.

The world has emerged from the depths of a paralyzing economic crisis, but recovery remains fragile amid the lingering pandemic, persistent labour market challenges, ongoing supply-chain disruptions and rising inflation.

Favourable terms of trade provide much needed policy room to combat the pandemic and advance transformative reforms that can sustainably reduce poverty and inequality.

Despite unemployment remaining above pre-pandemic levels, advanced economies are confronted with labour shortages. Ageing population, migration patterns, low wages and concerns about workplace safety explain the phenomenon.

In charting out the way forward, Sustainable Development Outlook 2021 focuses on policy efforts that are cross-cutting in nature and have positive effects on multiple SDGs.

Unconventional monetary policy measures have played a crucial part in central banks’ responses to the COVID-19 pandemic. Large-scale quantitative easing has led to an unprecedented expansion of developed country central bank balanced sheets.

The force of the US expansion is reverberating across the world through trade and financial channels. As the recovery picks up speed, concerns over rising inflation and interest rates in the US are increasing.