Research by Paul Pedzinski
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THE GLOBAL ECONOMY has been in a sweet spot in recent years, and prospects for 2007 remain favourable. World GDP is on course to post its fourth consecutive year of roughly 5% real growth, the fastest in several decades. Globalization, technological innovation and adoption, and economic reforms are enabling strong growth with sustained low inflation. Combined with abundant liquidity and what are by historical standards low interest rates, this positive macroeconomic backdrop has boosted global asset prices.
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