The world economy has settled into a holding pattern, with a broad-based but plodding recovery underway characterized by weak productivity and investment growth. Both advanced and emerging market economies have maintained modest growth momentum, but policymakers seem averse to the broader and tougher reforms that may be necessary to kick growth into a higher gear.
Business and consumer confidence has perked up in many advanced and emerging market economies, as confirmed by the latest update of the Brookings-FT Tracking Indexes for the Global Economic Recovery. The uptick however has not yet been reflected in substantially stronger investment demand.
