The global economy: realignment under way?

The global economy: realignment under way?

1. Unemployment rates generally fell in the year under review.

2. Perceptions of economic conditions

   • Further falls in commodity prices
   • Large swings in exchange rates
   • Lower than expected headline global growth.
     • These developments hint at a realignment of economic and financial forces that have unfolded over many years.

3. Lower oil and other commodity prices have not yet triggered the expected fillip to growth in importers.

4. Factor misallocation appears to be holding back productivity.

5. The debt overhang and uncertainty seemingly restraining investment.

6. GDP per working age person slightly outpaced its historical average

7. In EME commodity exporters, the downturn in the domestic financial cycle mostly compounded the fall in export prices and currency depreciations, with economic conditions becoming weaker.