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The global economy as a whole is in a period of strengthening growth. The recovery in global growth, which has been underway since mid-2016, continued in the first half of this year, reaching 3.6 per cent in the second quarter, the strongest reading since the end of 2010. This momentum in growth is driven by global manufacturing activity and trade, broadly stable financing conditionsEscalating trade protectionism in major economies threatens to derail the rebound in global trade. This could have severe consequences, especially for emerging markets and developing economies (EMDEs) that rely on trade for growth and development.EMDEs are also susceptible to policy uncertainty and geopolitical risks, which could lower confidence and investment. And many low-income countries are affected by fragility, conflict, violence, and adverse shocks.To end extreme poverty and building shared prosperity, we have to do three things: promote sustainable, inclusive economic growth; invest more – and more effectively – in people, through health, education, and social protection programmes; and build resilience to shocks and threats. This three-pronged strategy must carry across all sectors of development: from agriculture to energy, infrastructure, water, transportation, urbanization, and human development.Several trends in EMDEs – the need for regional integration and global trade, the expanding middle class, rapid and sustained urbanization, the urgency to lower emissions and combat climate change – all point to a continued increase in demand for infrastructure investment.JIM YONG KIM, PRESIDENT, THE WORLD BANK GROUPNEW CHALLENGES AND SOLUTIONS FOR THE WORLD’S SUSTAINABLE DEVELOPMENTPictured: Investment has to continue with education and skills-development to prepare people for the jobs of the future082 FINANCE AND INVESTMENT