The International Monetary Fund (IMF) has released its 2015 World Economic Outlook, which argues that the global economy is facing lower potential growth because of ageing populations, less investment and the limits of technology.
Specifically, the IMF estimates that the average growth potential in advanced economies has fallen 0.5% from what was considered the “speed limit” a decade ago to 1.3% today. By comparison, in the developing world, potential growth has slid from around 7.5% before the Global Financial Crisis (GFC) to an average of around 6.5% today, and is likely average only around 5.2% over the next five years:
