Global Economy May Slow to 3.25% From 4.7% Average

The new normal for the world economy may be arriving as the U.S., Europe and China all decelerate simultaneously.

After policy stimulus and inventory-rebuilding pulled the major economies out of recession with 5 percent growth in the first quarter, they are slouching toward a weaker expansion, even as they show signs of dodging a double-dip. Global growth may average 3.25 percent to 3.5 percent in the next three to five years, well below the 4.7 percent pace of the five years leading up to the 2008 slump, estimates Stephen Roach, non-executive chairman of Morgan Stanley Asia.