This, however, should not lead to any complacency, particularly in the context of the present fluidity of international capital markets and the increased vulnerability of developing economies to sharp fluctuations in macroeconomic situations. These disturbances tend to get exaggerated if the financial system is fragile and lacks depth in absorbing internal and external shocks.
While the early spend-out from fiscal support in the first quarter of this year was exceptionally strong, whether that strength will be maintained depends in part on the distribution of the remaining additional savings.