How should the world adapt to slower growth?

Watch the World Economic Forum’s Annual Meeting of the New Champions 2015 session on the Global Economic Outlook: The View From Asia on the video player below or follow this link.

 

Background

In July, the International Monetary Fund released its latest World Economic Outlook Update and its findings speak to the recent volatility in international markets. Global economic growth is looking to drop slightly in 2015, from 3.4% to 3.3%, due in large part to a slowdown in emerging market economies such as sub-Saharan Africa, as well as a setback in activity in North America.

While the Association of Southeast Asian Nations (ASEAN) is looking at a moderate increase in growth rates over the next two years, the numbers out of China tell a different story. Is this a worrying trend or is it to be expected as China seeks to rebalance after its recent currency devaluation and stock market adjustment?

There is no immediate end in sight to the growing volatility and uncertainty in international markets. To avoid a prolonged period of slow, unequal growth, countries will need to decide on priorities to reinvigorate and rebalance global growth.

 

Author: Murray Nicol is Digital Project Lead at the World Economic Forum

Image: A man checks his iPad on the Bund in front of the financial district in Shanghai. REUTERS/Aly Song