On 13 July 2022, the Financial Stability Board (FSB) published an interim report on exit strategies to support equitable recovery and address effects from COVID-19 and Russia’s invasion of Ukraine on the financial sector and how the FSB will address these issues going forward. It considers exit strategies in relation to financial stability and the capacity of the financial system to finance strong and equitable growth.
Recovery from the economic impacts of the COVID-19 pandemic has been divergent across jurisdictions. Limited ability to provide additional policy support, in particular in the form of fiscal stimulus, has been a factor behind a relatively weaker recovery in many Emerging Market and Developing Economies than in Advanced Economies. Russia’s invasion of Ukraine has also added to these pre-existing challenges by causing a setback to growth, triggering higher inflation and adding to economic uncertainty.