To get a sense of what it may look like, it’s useful to consider both the developments that are required for global economic growth to be sustained, and the likely impact of the powerful trends that have been shaping, and will continue to shape, the world economy. It is clear that, as a nation, Americans need to save more and rebuild household sector wealth.
For too long, the U.S. economy has been consuming more than it has been producing. This means that, in the future, more U.S. economic growth must come from net exports – a combination of higher exports and lower imports. Consumer demand will be a relatively less important source of growth.