- Global Challenges:
- Covid-19 pandemic.
- Russia-Ukraine crisis.
- Monetary tightening by central banks.
- Flight of capital from emerging economies.
- Increase in interest rates globally.
- Global growth forecasted to slow from 3.2% (2022) to 2.7% (2023).
- Growth in global trade expected to slowdown from 3.5% (2022) to 1% (2023).
- Domestic Challenges:
- Balance sheet stress caused by credit boom in previous years.
- Adverse impact on credit growth, capital formation, and economic growth.
- Some reforms deliver results with lagged effects.