The reduced ability of governments to finance their needs will likely increase the challenges faced by central banks in their efforts to assist the economic growth and development agendas of their national governments. Emerging market and developing economies have generally done a good job of reducing their financial and economic vulnerabilities over the past couple of decades.
Recent Developments in the Global Economy The global economy registered high growth up to the first half of last year, but it has decelerated since then, particularly in China and the euro area. Several factors account for this deceleration. First, there has been increased uncertainty regarding economic policy on a global level such as trade tensions and the Brexit negotiations.