According to the latest World Economic Outlook report published by the International Monetary Fund, “the global economy is caught in a low-growth trap”. The IMF says: “The world as a whole has seen a persistent reduction in its growth rate since the Great Recession and shows no sign of returning to normal. This marks a fundamental break in historical patterns.” It predicts that average growth will be just 1.6% per annum until at least 2020.

The IMF adds: “There has been a chronic lack of spending on the sorts of equipment and computer software that drive gains in competitiveness. This is worrying, because business investment is essential for supporting the economy’s future productive capacity. In some countries, weak business investment has contrasted with the ebullience of stock markets, suggesting a possible disconnect between financial and economic risk taking.”