The global economy grew by just over 3 per cent last year, almost ½ percentage point less than we predicted at the beginning of the year. Growth in the USA, the Eurozone, India and Russia, among others, was disappointing. Meanwhile, economic growth in countries like the UK and Japan exceeded our expectations. The disappointments are mostly history. In the second half of last year, growth in both the industrial and emerging economies rose to 2 and just over 5 per cent, respectively, which we believe to be “cruising speed”.