The global economy is in the midst of a sclerotic trajectory. Prices are soaring everywhere. Low- and middle-income countries are struggling with debt and the high cost of servicing that debt.
“The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one,” said the International Monetary Fund’s Pierre-Olivier Gourinchas in July.
This gloomy economic outlook brings many challenges for development organizations. NGOs are struggling to grapple with the uncertainty and are starting to notice a shift in their fundraising. Budgets are getting stretched because inflation is approaching historic highs, and organizations are also struggling to retain talent as aid workers search for stability and higher pay. Multilateral agencies are similarly facing the possibility of reduced budgets. And the people in low- and middle-income economies who are served by these organizations are facing the prospect of greater hardship.