Domestic demand in the Eurozone has made a remarkable recovery. GDP growth this year is projected at 1.7%, underpinned by private consumption and the ongoing recovery in the labour market. Business confidence has improved and political risks have dissipated somewhat in the wake of pro-business election results in the Netherlands and France. China is on a steady growth path. GDP is expected to grow by around 6.5%. Underlying private demand is recovering, with retail sales growing at about 10%. Profits have improved, industrial prices have started to recover, and export orders are rising. These should set off a virtuous cycle of stronger business confidence and capital spending. 1 / 10  BIS central bankers' speeches  The region is also holding steady. External demand has strengthened among the ASEAN-4 and NEA-3 economies, driven by the improving China and G3 economies. Notably, regional trade is on the rise again, on the back of an increase in machinery and equipment exports. The most keenly watched macroeconomic development this year – the normalisation of US monetary policy – has so far been largely benign. The global economy should be able to absorb the ongoing gradual increase in US interest rates, as the rise in rates is itself a response to strengthening economic activity. But vigilance is still called for: economies and markets have been accustomed to low interest rates for a very long time. They could be thrown off balance if rates rise faster than expected.

To support the transition to a more sustainable economy, there is a basic requirement for official statistics to be made available to meet the growing demand for underlying data and indicators to assess the social and economic impact of climate change and monitor the financial vulnerabilities stemming from physical and transitional risks. The close links between the financial and non-financial dimensions in this field make a collaborative approach particularly important. Finally, taking a longer time horizon into consideration, the ongoing review and update of the international statistical manuals (in particular the Balance of Payments Manual and the System of National Accounts) offers an opportunity to rethink the key concepts of macroeconomic statistics. One avenue is the consolidated framework, in which all entities belonging to a corporate group are assigned to the country of the headquarters. Such an approach has the potential to provide a useful alternative perspective, particularly on MNEs and in the identification of ultimate financial exposures. At the same time, such a consolidated accounting framework should complement rather than replace the residence-based framework, as both approaches offer specific advantages depending on the purpose at hand. Conclusions In conclusion, globalisation and the pandemic have both brought to the fore major measurement challenges for macroeconomic statistics. On the real side, globalisation-related measurement issues are affecting the analytical value of the statistics on balance of payments and national accounts. On the financial side, the key issues relate to the changing nature of FDI and to the proper measurement of financial exposures and risks.