Global growth has picked up in recent months and looks set to be fairly strong for the next two years. The US economy has a lot of momentum even without the planned fiscal stimulus, and prospects for the euro-zone have brightened despite political uncertainties. Many emerging economies are benefitting from higher commodity prices, but China’s growth rate is likely to slow gradually this year. Meanwhile, headline inflation has peaked in many countries and core inflation is set to remain subdued everywhere except the US.
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