weaker global growth, higher commodity prices) and how domestic capacity pressures were changing. ii) external risks Developments in the global economy often have major impacts on small open economies through channels such as trade flows, commodity prices, exchange rates, capital movements and funding costs.
There have been four troughs in global economic activity over the past 50 years – 1975, 1982, 1991, and 2009 – where we saw declines in world real GDP per capita.3 Three of these troughs were linked to oil price increases and the policy responses to them (1975, 1982, and 1991). The other was caused by the Global Financial Crisis (2009).