The strength of global growth during this period was supported by favourable financial conditions and stimulative macroeconomic policies in many countries. In the US, growth acquired considerable momentum from the sizeable fiscal and monetary policy stimulus which had been put in place earlier. In addition, supportive wealth effects from equity and housing markets also helped propel growth.
The improvement in the global economic environment during this time was not solely confined to the US. Growth accelerated sharply in China and East Asia, where it was supported by the strong rebound in global trade flows and a revival in domestic demand. Since the middle of 2004, global growth momentum has slowed somewhat, though this has not been uniform.