Macroeconomic Comment: Continued Global Economic Recovery

03/16/2021 – The continued positive development of the global Purchasing Managers’ Index for the industry underlines the expectation of a significant recovery in the current year. The International Monetary Fund has raised its forecast for global economic growth this year to 5.5% (prior year -3.5%) and expects 4.2% for 2022. While China is losing some momentum after a rapid recovery, the U.S. is emerging as the growth engine of the global economy. The latest rescue program alone will accelerate global growth by around 1%. Strong upward trends can also be observed in countries such as Taiwan, South Korea, and India. As a strong export region, the euro zone is benefiting from the strengthening of global trade, but is only able to realize its potential belatedly be-cause the undersupply of vaccines and viral mutations are delaying the opening of the national economies. The use of funding from the €750 billion program agreed last summer is still under discussion, so the first funds will not flow until mid-year at the earliest.

Read more in this month’s Macroeconomic Comment.

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