It is becoming obvious that the global economy, especially in some of the richer nations, is recovering. Recent indicators such as retail sales, industrial production, purchasing managers’ indices and labour market indicators, show good signs of revival.
Indeed, the International Monetary Fund this month revised upward its forecast for world economic expansion to 6.0% — the strongest rate in four decades — from 5.5% predicted in March.
The recovery is due mainly to three main factors: pent-up demand especially in the rich world, government and monetary stimulus measures, and the resumption of economic activity as a result of vaccinations.
The momentum is expected to build in the next few quarters. Bloomberg has calculated that Americans have at least $1.7 trillion of excess saving waiting to be put to work once the economy fully reopens and stimulus money is…
