Political and social unrest in the Middle East and North Africa as a result of rising food and commodity prices also threatens to add to already heady inflationary pressures. Thus, while the global recovery may be on a firmer footing than a year ago, it is questionable whether growth is more balanced than before the crisis.
Improved growth prospects in developed countries have largely been driven by fiscal spending and loose monetary policy, although more recently, certain advanced economies have begun to reduce the fiscal stimulus and started raising policy rates. On the other hand, emerging markets reflect robust consumer spending and private sector investment.