- Global GDP growth softened to 1.8% in Q1 2011 due to high oil prices impacting consumer spending and confidence, while unemployment remained persistently high. - Monetary policy tightening is needed in countries like China and elsewhere in the emerging world to control inflation, while fiscal austerity and high borrowing costs will constrain growth in southern European countries. - The earthquake and tsunami in Japan severely impacted power supplies and supply chains, leading to a downgrade of Japan's 2011 GDP growth forecast to 1%.