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Beware vicious circle of slow growth

Weak growth intensifies protectionist pressures, which further weakens growth prospects and makes the slow-growing process self-feeding.

The International Monetary Fund has said that persistent slow growth has scarring effects that themselves reduce potential output, consumption and investment.


GROWTH rates in the global economy are - as lift attendants in department stores say as the elevator descends - "Going down, going down". There is no telling whether the final stop will be reached at ground (zero) level or in the basement of negative growth.

Inflation and...