Even as the economy recovers from the structural shocks of GST and demonetisation, India missed out on a \u2018synchronized global recovery in 2017,\u2019 according to a latest report by IIF (Institute of International Finance). Taking stock of the impact on the economy due to these disruptions, IIF said, \u201cAs a result of these shocks, India missed out on the synchronized global recovery and growth in 2017 was a percentage point below its long-term average.\u201d The global economy was indeed robust in the previous calendar year, as a recent report by IMF said that global output is estimated to have grown by 3.7 percent in 2017, which is 0.1 percentage point faster than projected in the fall and \u00bd percentage point higher than in 2016. Taking stock of the impact of note-ban reform, IIF said, \u201cDemonetization in late 2016 affected 85% of cash in circulation and activity took a deep hit as distribution of new banknotes was slow. The effects on money aggregates were long lasting.\u201d According to the Institute, currency in circulation and broad money are still 2 and 6 percentage points of GDP below pre demonetization levels. Further, on GST, the report said that while the reform is positive for medium-term growth it has also caused a short-term disruption. IIF explains that GDP growth was already weakening before demonetization, but the note ban reform depressed consumption and investment further. \u201cA temporary increase in public consumption softened the blow in the first half of 2017 but GST implementation hit just as the economy was recovering from demonetization,\u201d the report said. Currently, consumption growth is yet to return to pre-demonetization levels but investment \u2018bounced back\u2019 despite uncertainty surrounding the rate structure and exemptions of the new GST. Taking stock of exports, IIF noted that weak net exports due to persistent real exchange rate appreciation also weighed on growth significantly. Going forward, the Indian economy is turning the corner, as it \u2018leaves behind\u2019 these two shocks and implements policies such as public-bank recapitalization, IIF pointed out. \u201cWaning exchange rate appreciation pressures and improving credit growth will support a rebound in exports and investment,\u201d it added.