Where Do We Stand With Major Macroeconomic Imbalances?

About a decade ago, many economists were worried about something called major macroeconomic imbalances. These included large trade deficits and surpluses posted by some countries, as well as high household and government debt. After the 2008–2009 financial crisis, the hope was that the imbalances would gradually disappear in favour of economic growth that was more sustainable in the long term and of a lower risk of another major financial crisis. This growth would also have to be marked by higher non-residential investment and increased productivity. This Economic Viewpoint takes stock of these imbalances and the characteristics of economic growth. Despite some progress, the situation still seems to be worrisome.