The prospects for the global economy remain highly uncertain amid stubborn inflation, rising interest rates, the lasting impacts of the COVID-19 pandemic, and the climate crisis. Despite global growth projections for 2023 recently being upgraded to 2.3 per cent (compared to 1.9 percent forecast in January 2023), longer term growth rates are expected to be well below pre-pandemic levels.¹ In developing countries, limited fiscal space coupled with rising costs of external financing present an urgent challenge to achieving the Sustainable Development Goals (SDGs).

The United Nations Secretary-General has called for the reform of the international financial architecture to address some of the structural deficiencies embedded in the current system. Issues that are critical to unlocking private finance, such as MDB reform, investments in green and resilient infrastructure and climate finance are at the core of ongoing discussions, including at the Paris Summit for a New Global Financial Pact and the SDG Summit.

The Strategy Group meeting will provide an opportunity to discuss how the deliberations around international financial system reform will impact the ecosystem in which the GISD Alliance operates. In addition, participants will discuss ideas on how the GISD Alliance, through its deliverables and engagement work, can further its contributions to accelerate private capital mobilization and enhancing alignment with sustainable development and climate action. Building on the discussion, Strategy Group members will identify pathways to accelerate the Alliance’s work on its current deliverables in 2023, as well as to strategize on GISD’s next phase that is expected to commence in 2024.