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This report looks at the world economy in 2002 and identifies priorities for 2003. The world economy in 2002 was characterized by several common features shared by a majority of countries to varying degrees: sluggish growth of output, benign inflation, stagnant employment, low interest rates, worsening fiscal balances, low and uneven growth in international trade, reduced international capital flows, lower prices for many non-fuel commodities, and depreciated equity prices. The present global economic weakness could be aggravated by prevailing uncertainties. Bringing about a robust and sustained recovery in world economic growth should therefore be the top priority for macroeconomic policies in most economies in 2003. Over the long run, further structural reforms continue to be needed so that both national economies and the international trade and financial systems contribute to higher and more balanced growth.