Ignazio Visco: Long-term trends and developments in the global economy

Statement by Mr Ignazio Visco, Governor of the Bank of Italy and Governor of the Constituency of Albania, Greece, Italy, Malta, Portugal, San Marino and Timor-Leste, to the Development Committee, Lima, 8 October 2016.

The views expressed in this speech are those of the speaker and not the view of the BIS.

1. Introduction

Global growth remains disappointingly anaemic. Adverse long-term trends in advanced economies - low productivity growth, aging populations - combined with the slowdown in emerging economies and especially heightened geopolitical risks result in a high degree of uncertainty which prompt firms to scale back their investment plans. If we do not act to reverse this situation a self-fulfilling trap of low growth may take hold.