Slowdon in global saving and investment vs strong global growth The third puzzle that I would like to mention is high global growth despite slow down in savings and investment. Global saving and investment rates have declined in recent years. Notwithstanding the declining saving and investment rates, global growth has continued its surge from period to period.
While consumption has arguably played a critical role in the industrial countries’ growth momentum, exports might have played a similar role in the emerging markets. The sustenance of consumption as opposed to investment-led growth has thus given rise to new controversies on present versus future allocation of resources as also on the relevance of overlapping generation outlooks.