In thinking about why growth has picked up somewhat more than had been expected, we should not overlook the fact that the global economy has surprised, once again, by its strength.
The most recent forecasts for global growth made by the IMF were revised upward only a few weeks ago, with growth now thought likely to be over 5 per cent in 2007, close to the 2006 result. The US economy has slowed but greater strength elsewhere has, to date, more than outweighed the US softening.