The Global recovery remains slow, with growing regional divergences and little margin for policy error The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent. Advanced economies are expected to slow from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024 as policy tightening starts to bite. Emerging market and developing economies...

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The OECD/G20 Inclusive Framework on BEPS has concluded negotiations on a multilateral instrument that will protect the right of developing countries to ensure multinational enterprises pay a minimum level of tax on a broad range of cross-border intra-group payments, including for services. The Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule, which is now open for signature, is an integral part of the Two‐Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of...

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Expectations increasingly drive inflation dynamics. Improvements in monetary policy frameworks can better inform people’s inflation expectations and thereby help reduce inflation at lower output cost. By Silvia Albrizio, John Bluedorn Inflation around the world reached multi-decade highs last year. While headline inflation is coming down steadily, core measures―which exclude food and energy―are proving stickier in many economies and wage growth has picked up. Expectations about future inflation play a key role in driving inflation, as those views influence decisions about consumption and...

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The Commission welcomes today's adoption of two final pillars of its ‘Fit for 55' legislative package for delivering the EU's 2030 climate targets. Ahead of the crucial COP28 UN Climate Conference, and next year's European elections, this complete package of legislation shows that Europe is delivering on its promises made to citizens and international partners to lead the way on climate action and shape the green transition for the benefit of citizens and industries. Commission President Ursula von der Leyen...

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Today, EU member states’ representatives reached an agreement on the final component of a common European asylum and migration policy. At a meeting of the Council’s permanent representatives committee, member states sealed their negotiating mandate on a regulation on crisis situations, including sentimentalization of migration, and force majeure in the field of migration and asylum. This position will form the basis of negotiations between the Council presidency and the European Parliament. The new law establishes the framework that would allow...

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Blog post by Myriam Moufakkir, Chief Services Officer |  The recent rise of artificial intelligence (AI) has led to a number of quite useful applications, such as helping doctors diagnose diseases and scientists crunch large sets of numbers. So, how does the ECB use this rapidly developing technology? As part of our core work we analyse vast amounts of data. This is the basis for good decisions that contribute to keeping prices stable in the euro area and ensure...

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Narrowing the gap between the share of men and women who work is one of the very important reforms policymakers can make to revive economies amid the weakest medium-term growth outlook in more than three decades. With global growth predicted to languish at just 3 percent over the next five years and with traditional growth engines sputtering, many economies are missing out by not tapping women’s potential. Only 47 percent of women are active in today’s labor markets, compared with 72 percent of men....

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Today, the Commission takes another major step to protect the environment by adopting measures that restrict microplastics intentionally added to products under the EU chemical legislation REACH. The new rules will prevent the release to the environment of about half a million tonnes of microplastics. They will prohibit the sale of microplastics as such, and of products to which microplastics have been added on purpose and that release those microplastics when used. When duly justified, derogations and transition periods for the affected parties to adjust to...

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On September 21, the European Chips Act entered into force. It puts in place a comprehensive set of measures to ensure the EU's security of supply, resilience and technological leadership in semiconductor technologies and applications. Semiconductors are the essential building blocks of digital and digitised products. From smartphones and cars, through critical applications and infrastructures for healthcare, energy, defence, communications and industrial automation, semiconductors are central to the modern digital economy. They are also at the centre of strong geostrategic...

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