Policy Papers

The global economy has experienced a synchronized slowdown, and growth remains weak. Escalating trade disputes, entrenched policy uncertainty, and adverse geopolitical developments have taken a toll on confidence,&nbsp;investment, and growth. The outlook remains&nbsp;precarious, and downside risks, stemming primarily&nbsp;from a further broadening of trade tensions and&nbsp;rising financial vulnerabilities, cloud the horizon.&nbsp;There is also a growing risk that trade disputes could&nbsp;spill over to monetary, exchange rate, or financial&nbsp;sector policies, threatening global financial stability&nbsp;and jeopardizing hard-won economic gains.<br />
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The focus must be on reversing tariff increases and&nbsp;finding lasting solutions to trade disputes, including&nbsp;by removing domestic distortions and strengthening&nbsp;the multilateral trading system. Domestic policies should&nbsp;continue to aim for more resilient, adaptable, and inclusive&nbsp;economies. By working together, guided by the principles of&nbsp;&nbsp;&ldquo;Joint Responsibility, Shared Rewards&rdquo; called for in the Spring 2019&nbsp;Global Policy Agenda, policymakers can bridge differences to secure lasting growth for the benefit of all people.&nbsp;<br />
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The Fund is helping countries design better policies and pursue opportunities for sustainable growth and development while modernizing its toolkit and operations to meet members&rsquo; evolving needs. By delivering on its mandate and working with other institutions, the Fund plays a key role in demonstrating the effectiveness of a multilateral approach to global challenges.