Despite MDB pledges to provide $120 billion annually for climate action by 2030, private capital mobilization multipliers remain low at 0.5x, meaning that for every dollar of MDB investment, just 50 cents in private capital is generated.

This note explores trends in U.S. labor productivity compared to Europe, the relative contributions of key sectors to economic growth, and the role of AI in potentially influencing these dynamics.

This week’s Digital Finance Developments discusses new and expanded Open Finance frameworks, and new guidance on these policies from multilateral organizations. New policies highlight long-standing concerns about business models and data security, along with questions about cross-border compliance.

Global fossil fuel carbon emissions are projected to rise to a record high of 37.4 GtCO2 in 2024, up by 0.8% from 2023—China and the U.S. are top emitters. Amid concerns that the window to achieve Paris Agreement targets is fast closing, climate finance flows surpassed $1.5 trillion in 2023, led by significant increases in renewable energy and low-carbon technology.

China's response to an imposition of higher tariffs by the Trump Administration will likely use a number of tools, including trade and investment diversification, retaliatory tariffs, and exchange-rate depreciation. That said, Chinese manufacturers have limited capacity to reduce exports.

In general, central banks in advanced economies have shifted toward easing, with differing paces driven by local conditions. Central banks in emergin...

Persistent fiscal woes have put Brazil in a vulnerable situation despite its strong macroeconomic position. In this LatAm Views, we discuss Brazil’s significant fiscal challenges and recent macroeconomic developments.

This note updates our economic forecast for Pakistan for FY 24/25 and FY 25/26. It also analyses the extent to which the new $7bn IMF program (agreed in late September) can accomplish the structural reforms that are desperately needed in the country.

Portfolio flows to EM stood at $19.2 bn in November. Equity and debt flows were -$11.1 bn and $30.4 bn. Chinese equities posted $5.8 bn in outflows. ...

We expect India's growth to slow back to trend in FY25/26 of 6.5% and see the RBI cutting its policy rate by a cumulative 100bps to 5.5% by the end of 2025. Over the medium term, if strong reforms are implemented as envisaged by the government, potential growth could rise to a new range of 7-8%.

Japan’s GDP is forecast to grow 1.0% in 2025, driven by recovering domestic demand and wage-supported consumption. Inflation at 2.5% reflects wage gr...

Policies will remain appropriately tight in 2025, which will help moderate inflation and inflation expectations further. Output growth will weaken, keeping external imbalances in check. We expect a “muddle through” scenario leading up to the 2028 elections.