So-called 'zombie firms' are in the frontline of risk. Zombie firms - 'Indebtedness of households and corporations has reached record levels in many countries,' OECD chief Angel Gurria said recently. The IMF, OECD and economists have pointed to the rising gearing of companies which, having bulked up on borrowing amid ultra-low interest rate policies meant to fuel economic recovery, now face the prospect of rising interest rates. Risks this time could stem from private firms succumbing to unsustainable debt. 'Pleasant as it may be to bask in the warmth of recovery … the time to repair the roof is when the sun is shining,' Kennedy advised lawmakers as the US economy recovered from recession, she reminded listeners in an October speech. Kennedy to impress upon governments that they need to address potential problems now. IMF chief Christine Lagarde has taken to quoting US president John F. But that doesn't mean that governments should be complacent, they caution. The International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD) expect the global economy to grow by 3.7 percent in 2018 and their forecasts are infused with an optimism unseen in over a decade. is behind us and this growth gives us reason to believe it is sustainable,' the EU's economic affairs commissioner Pierre Moscovici said recently.

Meanwhile the eurozone is finally expanding at a reasonable pace after years of anaemic performance and emerging nations like Brazil are expected to rebound from recession. The US economy is purring along in the longest cycle of expansion in its history and China, the locomotive of global growth in recent decades, is on track to deliver more. The outlook for the global economy appears bright for the moment thanks to steady growth in the world's major economies, in stark contrast to reigning pessimism only a year ago when Britain's Brexit vote and Donald Trump's protectionist policies weighed on sentiment. But a decade after the collapse of the US subprime mortgage market triggered a global crisis, there are warnings that debt is becoming a big risk, lurking in the next room like the scary bears in the children's tale. The global economy is enjoying a Goldilocks moment, with growth and inflation neither too hot nor too cold.

Goldilocks economy 2017