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Global Economic Prospects June 2025
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Global Economic Prospects, June 2025

The global economy is facing substantial headwinds, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the weak outlook limits their ability to boost job creation and reduce extreme poverty. This challenging context is compounded by subdued foreign direct investment into EMDEs.?

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Fragile and Conflict-Affected Situations - Intertwined Crises, Multiple Vulnerabilities

Fragile and Conflict-Affected Situations: Intertwined Crises, Multiple Vulnerabilities

Nearly 40 percent of the population of FCS economies lives in extreme poverty. By 2030, these economies are projected to account for nearly 60 percent of the world¡¯s extreme poor, up from 50 percent in 2024. They also bear a growing burden of hunger: around 200 million people¡ªnearly one in five¡ªnow face acute food insecurity.

FDI Report
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Foreign Direct Investment in Retreat: Policies to Turn the Tide

Foreign direct investment (FDI)¡ªan important source of external financing for emerging market and developing economies (EMDEs)¡ªhas weakened since the global financial crisis, heightening the challenges of filling vast infrastructure gaps, reducing poverty, creating new jobs, and addressing climate change. This study provides a broad perspective on the evolution of FDI inflows to EMDEs since 2000, including patterns across regions and changes in sectoral composition.

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    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. 

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    Countries that successfully capitalize on ever-advancing technologies and the growing consumer demand for sustainable products will deliver meaningful benefits to their people and economies. The publication identifies specific areas of opportunity and concrete actions that countries in the Latin American and Caribbean region can take to reap the upside of the energy transition.

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    The report demonstrates how refugee self-reliance in Sub-Saharan Africa remains elusive and identifies reasons. "Making Refugee Self-Reliance Work: From Aid to Employment in Sub-Saharan Africa" advocates for the enhancement of refugee self-reliance as a strategic, humane, development approach to refugee assistance. 

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    Latin America and the Caribbean has lost not decades but a century of growth due to its inability to identify, adapt, and implement new technologies. The continent can reclaim the lost century by building learning economies, creating the human capital, institutions, and incentives needed to increase the demand for knowledge, facilitate the flow of new ideas, and foment the process of experimentation.

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    What are the resilient and low-carbon investments that cities around the world could make in the coming decades? How much will these investments cost, and where can cities look for resources to pay for these investments? These are the questions that Banking on Cities: Investing in Resilient and Low-Carbon Urbanization considers.

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    In an era of rapid global technological change, productivity growth in the East Asia and Pacific (EAP) region has decelerated. The most-productive firms are lagging behind the world¡¯s leading firms, particularly in the digital-intensive sectors driving innovation. Closing this gap is critical.

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