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The US recovery is speeding up but the global economy isn’t out of danger

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The US recovery is speeding up but the global economy isn’t out of danger

The economic recovery in the United States and China is gaining steam, triggering a wave of upgraded forecasts and optimistic commentary. Meanwhile, economists watching other parts of the world are getting worried.

“While the outlook has improved overall, prospects are diverging dangerously not only within nations but also across countries and regions. In fact, what we see is a multi-speed recovery, increasingly powered by two engines — the US and China,” Kristalina Georgieva, the managing director of the International Monetary Fund, said in remarks last week.

Her comments set the tone for a week of virtual meetings at the IMF and the World Bank, where the pace of the Covid-19 recovery will take center stage. Finance ministers from top economies are also set to convene this week at a meeting hosted by Italy.

Georgieva hailed “good news” for the global economy thanks to vaccinations and additional stimulus spending in the United States. She indicated that the IMF will upgrade its global economic forecast on Tuesday. The group last predicted that global growth would hit 5.5% in 2021.

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