In many emerging markets, however, the scope for both monetary and fiscal easing has narrowed, as policy makers look to manage rising vulnerabilities. In many cases cyclical policies need to move in sync with structural reform measures aimed at boosting potential growth in the medium-to-long term. Globalisation and interconnectedness are key features of the world economy.
According to estimates by the IMF, the world economy grew by 5,4 per cent last year, following the 4,9 per cent recorded in 2005. In fact, the growth rate during the last five years averaged 4,5 per cent making it the highest in more than three decades. There are some important characteristics of the recent growth performance of the global economy.