The International Monetary Fund is cutting their global growth forecasts.
“The pace of global recovery has disappointed in recent years”, the IMF said, noting that since 2010 it had been consistently forced to revise down its forecasts. “With weaker-than-expected global growth for the first half of 2014 and increased downside risks, the projected pickup in growth may again fail to materialise or fall short of expectation.”
The bank thinks that the Eurozone and deflation will be a major hinderment to global growth in the future.
To me it is clear that the focus on growth above all else has had its benefits but also a lot of negatives. Climate change is one of the more noticable problems associated with our fixation on growth.
In Thomas Pikkety’s book Capitalism in the 21st Century he mentions that for the years pre-dating the 20th century levels of growth were below 1 percent for many a year. Then the Industrial Revolution happened and global econonomic growth took off.
Developing countries like China and India will usually have higher growth rates than developed countries until they are finally developed and their super-charged economies enter a cooling off period. Yet even a developed country like the United States with a lower growth rate can accomplish major things–like creating the Internet for example.
So growth is not the end all be all. We’re seriosuly going to have to discuss how we want the future of the world to develop. The global growth rate will be lower but we should also be thinking about it being sustainable.