The worst period of global fiscal austerity is finally passing and this should give a boost to growth in advanced economies, at least relative to 2013. But the benefits will vary between countries. The US stands to gain the most, as last year’s draconian cuts are unlikely to be repeated, and even in the euro-zone the fiscal squeeze is easing somewhat. In the UK, on the other hand, deficit reduction is continuing at a steady pace and in Japan and some emerging economies the fiscal stance will be tightened this year.
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