Most of the world’s leading economies should prepare for a prolonged period of significantly lower growth rates, which will make it much harder for governments and companies to bring down their debt levels, the International Monetary Fund has warned.
The warning will reignite fears that the world is facing what some economists have called “secular stagnation”.
The findings, included in one of the analytical chapters of the IMF’s twice yearly World Economic Outlook, mean that living standards — particularly in the developing world — could grow more slowly than they did before 2008.
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