How much economic activity did the world 'pull forward' with the debt binge of the last two decades?
From Real Time Economics:
The world economy will struggle to grow above its potential over the next five years as advanced economies recover but the gain is offset by a slowdown in emerging markets, according to a global forecast released Tuesday by the Conference Board.
Over time, the emergence of larger middle classes in the developing markets will help global businesses that must adjust to declining demand among struggling middle-class consumers in the advanced nations.
The Conference Board’s global forecast expects world gross domestic product to grow 3.2% in 2012 and accelerate to 3.5% from 2013 until 2016. Farther out, growth is projected to average 2.7% from 2017-2025. Each period’s projected pace is less than the 3.6% average during the 1996-2005 period, before the severe recession hit....MORE