The recent upward revision to the forecast reflects improving sentiment for global economic prospects. There are some risks to the forecast, however, which relate to a potential reversal of capital flows that could follow the ongoing wind-down of asset purchases in the United States of America.
This could undermine growth prospects for emerging market economies, which have been a major source of global economic growth. Global inflation is projected to maintain the 2013 level of 3.8 percent. This is against the background of stable commodity prices, subdued output growth and persistence of spare capacity, as well as high unemployment rates in major economies.