We analyze the main forces affecting financial system pro-cyclicality (the fact that developments in the financial sector can amplify business cycle fluctuations). We first review some major structural developments in financial markets that may influence pro-cyclicality and that have been...

The war in Ukraine slows the global recovery. This article briefly presents the IMF’s growth forecasts for 2022 and 2023. In addition to addressing the immediate challenges of the war and the pandemic, it also highlights the need for continued, focused longer-term economic policies,...

The Covid-19 pandemic caused a severe economic downturn worldwide in 2020. This article briefly presents the IMF’s first growth forecasts for 2021 and 2022, and highlights the necessity of continued economic and health policy supports for a rapid recovery from the pandemic recession.