Economic development calls for clear and predictable rules, and institutions that assure they will be enforced. The challenges: pending reforms It is not foreseeable that in the immediate future the world economy will present a favorable expansion pattern.
The principal hurdles are the enormous current account deficit of the United States and an imminent fiscal deficit, to which we have to add the lack of structural reforms in Japan and Europe. It is evident that a situation in which the U.S. economy is absorbing two thirds of the world’s savings is not sustainable.