Risks coming from advanced economies include: a)  weak domestic activity amid sustained ultra-low inflation/deflation;  b)  sustainability of key reform measures in the euro area amid improving growth prospects; and  c)  a faster than expected pace of US monetary policy normalization.
Possible risks emanating from emerging market economies (EMEs) include: a)  protracted weak growth in certain EMEs;  b)  economic slowdown in China; and  c)  geopolitical risks. A third risk is the build-up of financial stability pressures from high liquidity and credit growth that could lead to potential asset bubbles.