Factors that could strengthen global activity

There are some factors which could lead to a renewed strengthening in global activity. 

The United States could post even stronger output growth, led by rising household expenditures in response to increasing job opportunities, strengthening income trends, and much improved balance sheets. 

The U.K. should also remain a relative outperformer, benefiting from continued capital inflows and construction activity. Comparatively low gasoline prices are a major boost to household and business spending power.

"Very accommodative policy settings in many countries and regions have the potential to underpin increased economic momentum around the world. Many central banks are still reducing historically low borrowing costs, while currencies are adjusting lower vis-à-vis the U.S. dollar to help boost export competitiveness", says Scotia Bank.

Recapitalized financial institutions, especially in the U.S. and increasingly in Western Europe, have the balance sheet strength and capabilities to further expand bank lending to households and businesses.