The world economy decelerated significantly following the failure of Lehman Brothers in September 2008. Currently, however, economic conditions around the world have generally  BIS Review 47/2010  1  continued to recover moderately due to the effects of economic stimulus measures by governments and inventory restocking.
The U.S. and European economies remain in the early stages of recovery, but the pace continues to be moderate due to prolonged balancesheet adjustments. 1 However, economies in Asia, including China, have continued to grow at a relatively rapid pace, in line with the improvement in domestic demand. The world economy as a whole is expected to continue recovering moderately.