The global economy is on the path to recovery, but there are hazards in the road and the journey will not be easy.
The recovery in the first half of 2010 was stronger than originally expected, but we anticipate a slowdown in the rate of growth during the next 12 months in light of waning fiscal stimulus, and concerns about sovereign debt and associated financial stress.
Renewed financial instability this spring and long unemployment lines this summer jolted us back to the harsh reality: we still face fundamental weaknesses in the financial sector and structural challenges in the public finances of advanced economies, while the rebalancing of global demand remains elusive.
The world must see greater progress in these areas if we are to secure lasting, broad-based growth.
Without the pressure of crisis motivating decision-making, we need strong leadership for tough policy choices.