Consolidated and internationalised competitive conditions have ensued from this process, thus continuously placing adjustment requirements on all economies. This challenge is being accompanied in many, predominantly advanced economies by demographic changes which require additional efforts. I Under realistic assumptions the US, but in particular also Asia, will remain the centres of gravity of the global economy in the next years.
However, without changes in the conduct of economic policy this would also mean that the existing global current account imbalances would become even more pronounced. This could result in an increasing risk of sudden exchange rate and financial markets movements. Moreover, enormous challenges add to the vulnerabilities connected with the current global imbalances.