Downward revisions in growth forecasts affect all income groups and regions, especially emerging markets. Urgent action is needed to counter this trend, as it could worsen living standards and hinder poverty reduction efforts.
Policies focusing on capital and labor allocation, addressing labor shortages, and enhancing market competition could offer some relief. Additionally, leveraging technologies like AI to boost productivity is crucial, although its impact on the workforce and job displacement requires careful consideration.
To maximise AI's benefits while mitigating risks, countries must strengthen regulations, protect intellectual property, and ensure equitable distribution of AI-related gains. Failure to do so could exacerbate social tensions and hinder the transition to a greener economy.
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