U.S. and China Shoulder the Burden of Global Recovery
The world economy has slowly turned the corner this year. Its strong recovery is linked to the massive fiscal and monetary stimulus that was implemented in every region of the world, plus the rollout of vaccines that has resulted in a sharp pullback on restrictions of activity.
While China’s success at containing the virus last year enabled the Asia-Pacific region to attain pre-pandemic levels of activity in the final quarter of 2020, the massive fiscal and monetary stimulus in the United States economy will enable the entire global economy to rise above pre-pandemic levels over the summer months.
However, this important milestone does not reflect the pandemic’s damage to world labour markets as some jobs in the services sector may never come back.
Contents of the Summer 2021 edition include:
- Republicans critical of Democrats’ spending plans
- Strength of recovery leading to shortages of some goods
- Massive fiscal deficits here to stay
- Global inflation on the rise
- Latin America continues to be a drag on global growth
- Asia-Pacific still number one
- European economy on the mend but challenges remain
- Africa’s complicated rebound