Global growth appears to have regained a firmer footing, the most recent update of the Brookings-FT TIGER index shows. The measure finds both advanced economies and emerging markets registering positive momentum after a period of volatility. While the headline reading points to stability, the underlying picture is mixed: momentum is uneven across regions and sectors, leaving policymakers with limited room for error.
The report highlights two enduring headwinds: persistent inflation pressures and broad fiscal looseness in several economies. These forces complicate central banks’ policy choices, as monetary authorities weigh the risk of re-igniting price pressures against the costs of withdrawing accommodation too quickly. At the same time, stretched public finances reduce fiscal manoeuvrability, increasing reliance on monetary policy to sustain activity.
Addressing those constraints will require reforms that go beyond short-term demand management. The survey underlines the importance of measures aimed at raising productivity — including improvements in labour market functioning, more vigorous competition policy, targeted public investment in infrastructure and skills, and regulatory adjustments that facilitate private-sector investment. Such structural actions can expand potential output and help economies tolerate lower levels of stimulus without sacrificing growth.
The implications extend to international resilience. A recovery built chiefly on temporary demand support and easy financing is vulnerable to shifts in global financial conditions, commodity price swings and geopolitical shocks. Strengthening institutions, restoring credible fiscal paths and implementing productivity-enhancing reforms would reduce those vulnerabilities and broaden the basis for sustainable expansion. The Brookings and Financial Times collaboration that produced the TIGER update underscores that, while growth has stabilised, durable improvement hinges on policy choices that address persistent imbalances rather than relying on cyclical boosts alone.
