Some scholars have, for example, linked the “Great Inflation” seen in the 1970s to policy-makers’ misinterpretation of changes in the economy’s rate of productivity growth. In their view, after years of strong growth in the 1960s, policy-makers considered the slowdown to be a temporary phenomenon, while it later became evident that the deceleration in productivity was more persistent.
The economic entities of major developed nations had anaemic growth. Recession loomed in Eurozone. Under such an uncertain global economic and political environment, the MSAR Government insisted on promoting appropriate economic diversification.