Is the global economy stumbling into ‘the tepid Twenties’?
Growth is picking up in the short term, but, fears are mounting of a stagnant decade, with bleak political consequences
AFTER a spell of soaring prices and steep interest rates, European Central Bank (ECB) president Christine Lagarde allowed herself a moment of optimism last week.
“We are clearly seeing signs of recovery,” she said on Wednesday (Apr 17). A “phenomenal” job market would be matched by a rebound that, although “timid” at first, would pick up speed over the course of 2024, she added.
Her relieved tone – reflected elsewhere in a sunny Washington during the International Monetary Fund (IMF) and World Bank’s spring meetings – was understandable. A buoyant US economy, soaring domestic demand in India and waning price pressures elsewhere have reduced the chances of a much-feared global recession to near zero. The IMF now foresees the world economy growing by 3.2 per cent this year, up from the 2.9 per cent projected six months ago.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Opinion & Features
Singapore offices await a new wave of tenants
Musk has made Tesla a meme stock
The dog ate Japan’s plan to phase out coal power
If inflation continues to build, the Fed won’t be able to maintain neutral stance for long
Last rides and last rites: The rise of the limousine hearse
Beyond US aid, Ukraine needs European allies to step up