The global economy remains fragile despite a positive short-term growth momentum. Re-energizing reforms to strengthen economies’ long-term potential remains essential to creating jobs and strengthening sustainable and inclusive economic growth.
Given the negative headwinds to growth, countries are focusing on ways to reignite long-term growth. Those with remaining fiscal space may use it to spend on public goods, including on infrastructure that the private sector cannot finance and on policies that prevent longer-term damage to worker skills from unemployment. Beyond these policies, the focus needs to shift to bolstering productivity, facilitating higher investment, and strengthening human capital. Policy design needs to reflect the changing nature of work with a rapid rise in technology, notably automation, aging and climate change.
The session will showcase successful examples that reignited growth through reforms and will provide a blueprint for many low and middle-income countries that are in search of sparking growth during the global slowdown.