Key messages

Global growth is strengthening but longer-term challenges remain

•Growth has picked up and is synchronised globally
•Policy stimulus is supporting the upturn, but the private investment recovery is modest
•Inflation and wage growth remain subdued
Financial vulnerabilities and high debt could undermine medium-term growth
•Low interest rates and low market volatility have encouraged risk-taking
•Corporate indebtedness is high and rising, creating vulnerabilities
•High debt makes households in many countries vulnerable to shocks

Policy action will be key to ensure robust, inclusive and resilient growth

•Focus structural and fiscal action on long-term potential as monetary policy support is reduced
•Implement reform packages to promote productivity, higher wages and inclusive growth
•Pursue an integrated approach to balance growth and risks in the financial sector