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According to IMF staff, as reported in their World Economic Outlook, real GDP should expand by about 2 percent in advanced economies this year and next.Indeed, real GDP per capita expanded by more than 2 percent in at least a quarter of those years.In Europe, real growth GDP has been only barely positive, on average, since the financial crisis, and its level in 2016 was about 20 percent below that predicted by the trend over the ten years up to 2007 .According to the IMF, growth in the advanced economies' real potential GDP – think of this as the underlying trend for aggregate supply – has fallen by half this century, from 2.71 percent in 2001 to as low as 1.28 percent just a few years ago.For example, when the U.S. economy was experiencing 4 percent trend growth, real GDP could be expected to double in 18 years, comforting parents about their children's economic future. At the current trend of 1.5 percent growth, the period needed to double GDP stretches to 48 years, darkening the economic prospects of the grandchildren.
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