Such a buildup of imbalances is clearly apparent in the form of significant accumulation of private-sector debt against the background of excessive fiscal and monetary policy measures since the Lehman shock, and of the increase in capital inflows to these economies based on excessive expectations for economic growth.
If the adjustment process is actually occurring, growth in these economies will likely continue to lack momentum for a protracted period. Meanwhile, uncertainty remains regarding the momentum toward recovery for the U.S. economy and other advanced economies. In this situation, I am paying particular attention to the slowdown in the labor productivity growth trend in these economies, especially in the United States.