(ii)  After a consistent reduction in macroeconomic imbalances over FY00-04, the fiscal and external current account deficits have been above the targeted levels for FY06 and are likely  BIS Review 71/2006  1  to remain in that range in FY07. Most notable is the concern regarding trade deficit which is around $ billion in FY06.
•  Growth in China is improving, though economic activity has slowed further in some other major emerging economies. •  Supported by central bank actions and by positive policy developments in Europe, global financial conditions are more stimulative.