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The plateauing of global economic growth during 2018 has now turned into a slowdown for 2019. While there is no shortage of short-term risks, the slowdown seems more driven by long-term factors such as stagnant labor supply and weak productivity growth rather than a large pullback in investment in anticipation of an imminent downturn. The slowdown has gone hand in hand with a shift in monetary policies by the world’s largest central banks toward greater easing. Business leaders and policy makers should avoid overreacting to short-term volatilities and stay focused on strategies and policies that raise the long-term potential of the economy.