It is still uncertain, however, whether the global economy will return to its 4 percent growth path, which is above the average of the past three decades, in line with the IMF’s outlook.
While there are many reasons for the uncertainty, the main one is that the global economy is still in the phase of balance-sheet adjustment following the bursting of credit bubbles that expanded in the late 2000s, and therefore the adjustments in both the public and private sectors are likely to dampen economic performance as a whole.