The downward revision was due to the following: (1) the greater-than-expected base effect; (2) the delayed improvement in the output gap, which had seen an unexpected deterioration for two consecutive quarters since April-June 2014, although it was at around zero percent (Chart 3); (3) a slower-than-expected increase in inflation expectations; and (4) a decline in crude oil prices since around July 2014.
Every year more than 50-60 million people from emerging market countries, essentially in China and India, are entering the market economy, both as consumers and as producers of tradeable goods and services. The previous great leaps were the absorption into the market economy of only 70 million people from Korea, Taiwan, H.K.