There are early signs of investment picking up, including in large emerging markets, which are seeing a rise in trade activities, said Former Reserve Bank of India Governor Raghuram Rajan.
"For the first time in very long, we are seeing all the growth engines firing," he said.
He also said that there is good news coming from the US as many protectionism fears have failed to play out and President Donald Trump's promises of tax cuts and increased infrastructure spending look far away.
While he said the employment numbers in the US seem to be picking up, the biggest challenge ahead will come from geopolitical risks, especially the upcoming French elections.
'I worry that the market doesn't seem concerned about uncertainty,' said Rajan.Watch video for more.