A more normal world?

The US, Japan and China appear to be heading towards a "new normal". However, the 2014-16 period will be critical to ensure that global growth is put on a sustainable path as ample challenges persist. The brief will first discuss what the new manual would look like in the US, Japan and China. It also analyses the downside risks and the challenges related to the transition to the new normal. The possible implications of the paths followed by these countries to move to a "new normal" for the growth outlook of the European Union and the Euro Area is briefly discussed in the final part of this brief.