Abstract
World economy will grow by 3.7 per cent in 2014 and 2015; an improvement on the 3.1 per cent last year, but still a sluggish recovery by historical standards.Growth prospects have improved in advanced economies, particularly in the US, but have deteriorated in a number of emerging market economies.High unemployment rates coupled with moderate and uneven growth raises the spectre of unexpectedly low inflation. This could greatly complicate macroeconomic policymaking.
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