The difficult economic climate in Europe and the US is set to
continue for many years, despite desperate efforts to stimulate
growth. The long phase of expansion in western economies that
lasted from the 1980s until 2008 was driven by easy money, cheap
imports and confidence - all gone. And the shift of geopolitical
power to Asia is permanent. Western economies face huge political
obstacles to reforms that would boost productivity and growth -
continuing stagnation is far more likely. Businesses and
policymakers need to adjust to the new reality. And the quicker
they do so, the more likely it is that economic prospects will
eventually improve.
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