Sovereign debt challenges and high levels of unemployment still present risks to growth in advanced economies, and many emerging-market economies have to grapple with risks of overheating economies and rising inflationary pressures.
More recently, downside risks to growth have increased on the back of recent developments in the Middle East and North Africa (MENA), which have led to a further increase in the oil price, to more than double the levels that prevailed about a year ago. Food prices have increased substantially in many countries and have added to the pressures being observed.