Since the 2008 financial crisis in the United States, the recovery of world economy suffers many setbacks.

Anbound's research team is of the view that the weak recovery of world economy is mainly due to the global saving glut – a huge excess of savings over investment in China and other developing nations.

When too much money is chasing too few investment opportunities, the world's economic recovery is weak.

The policy makers should take seriously the possibility that the excessive savings and the persistent weakness in the global economy could be the new normal.