Regional Specialists Review November 2010
Overview: Contrary to popular impression, global growth continues apace. Several economies (China, India, Australia and S. Korea, for instance) are showing signs of overheating. Much of the developed world, of course, is experiencing much milder growth, and uncertainty remains elevated.
Many governments are moving aggressively to arrest large deficits and high debt. This creates risk, particularly if done too rapidly. More positively, central banks appear to remain committed to low interest rates and are trying to accelerate lending. It's particularly difficult to know the net result in this cycle, but the likely outcome remains one of moderate global growth, in our view.