Excluding the sugar boom of the early 1970’s, our natural rate of growth hovers around 4 per cent, which is a more realistic benchmark in the absence of deep structural reforms. Our sources of growth are qualitatively different from the growth drivers of most African countries; our human capital still remains key to our progress.
This indicator reflects the fact that failures of global banks are more difficult to handle owing to coordination difficulties and cross-border spillover effects. When the responsibility for banks is shared, additional capital buffers for cross-border activities lose their raison d’être.