World Economy Caps Extraordinary Return From Covid-19 Collapse

The world economy likely returned to its pre-pandemic size in the spring, according to economists, marking an extraordinary comeback from the deepest global downturn in decades. But new variants of Covid-19 are casting a cloud over the global expansion, disrupting manufacturing powerhouses in Asia, leaving some Western consumers on edge and driving a wedge between rich and poor countries.

In Europe and North America, businesses and households are starting to look tentatively beyond the pandemic, thanks to widespread vaccinations. But governments in parts of Asia are introducing new social restrictions and spending plans to combat the fast-spreading Delta variant. Meanwhile, Africa’s low vaccination rate means its economic recovery is expected to lag other regions.

Close to 40% of the population in advanced economies has been fully vaccinated against…