The Outlook for Advanced Economies

In this paper we consider the outlook for economic growth of the advanced economies, focusing on the G7: Canada, France, Germany, Italy, Japan, the U.K., and the U.S. We compare the growth prospects for the G7 with the prospects for Developing Asia, the countries of Asia including China and India but excluding Japan. We find that the balance of world growth has shifted from the G7 economies to the emerging economies of Asia. We show that the advanced economies will recover from the financial and economic crisis of the past decade, but that a longer-term trend toward slower growth of these economies will be re-established.