There are “good reasons” to be optimistic about global economic growth this year, but Monetary Authority of Singapore managing director Ravi Menon cautioned that policymakers will need to watch out for inflation, protectionism and financial instability risks — or the three bears that could derail the current Goldilocks economy. Mr Menon noted that many analysts have characterised the healthy growth, low inflation, and easy financial conditions as a Goldilocks scenario: A global economy that is “chugging along, not too hot, not too cold”. He said: “The Goldilocks scenario – at least for this year – is a reasonable baseline view. But we need to be watchful of the three bears who may show up at the front door any time.” 2017 was described as a good year for the global economy, with the world gross domestic product estimated to have grown by 3.8%, “significantly higher” than the 3.2% in 2016.