The global economic outlook is slightly weaker than the Bank projected in its October Monetary Policy Report. At the same time, global tail risks have diminished. The economic expansion in the United States is continuing at a gradual pace, restrained by ongoing public and private deleveraging, global weakness and, more recently, by the uncertainty related to fiscal negotiations. Despite a marked improvement in peripheral sovereign debt markets, Europe remains in recession, and recent indicators point to a somewhat more protracted downturn than expected in October. While growth in China is improving, economic activity ... (full story)