Attention Economy


Sunday, April 12, 2015

The New Mediocre

IMF chief Christine Lagarde on the global economy

“I asked Lagarde whether the world has entered into a prolonged period of slow economic growth—what economists call “secular stagnation.” She said that she prefers to describe the situation as the “new mediocre,” and explained that global economic growth over the past two years, and again this year, has averaged about 3.5 percent—the same average rate at which the world economy has grown over the last two decades. What has changed, Lagarde noted with concern, is the nature of that growth: “It is not creating the jobs that are needed and job creation is spread out in a way that does not respond to the needs. It is also not sufficiently boosting productivity and, surprisingly, emerging markets, which have the potential to grow at a much faster pace, are not doing so.””