Pandemic's Summer Resurgence Is Slowing the Global Economic Recovery

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Data over the past week captured a worldwide weakening as infections from a Delta surge hit travel and spending and worsen supply bottlenecks that are dampening manufacturing and trade.

Instead of entering the final months of 2021 confident that the acute phase of the pandemic is over, it’s becoming clear that booster shots may be needed for fading vaccines, workplace re-openings will be delayed and border closures remain.

“The spread of the delta variant is slowing the reopening process and has caused us to mark down growth globally,” said Robin Brooks, chief economist of the Institute of International Finance in Washington, referring to its revised 5.7% forecast for this year, from 6.2%.

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Slow and Bumpy Ride On the Road to Global Economic Recovery

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According to BBC News, the global economy recovery will be slow and bumpy.

(April 28, 2013):  Last week, data showed that the US economy, the world's biggest, expanded by 2.5% in the first quarter of the year. That's lower than the 3% growth many analysts had forecast.

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Asia Appears To Be Leading the Global Economic Recovery

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Those are the words from Ben S. Bernanke, the chairman of the Federal Reserve and he also stated that the Asian nations were pulling the global economy out of its downturn.

Mr. Bernanke avoided what was in many ways the elephant in the room: the value of the United States dollar. The dollar has dropped sharply in recent weeks against the euro and the Japanese yen, a move that has helped increase American exports by making them cheaper in some foreign markets. But the dollar has not budged in more than a year against China’s renminbi, which the Chinese continue to tightly manage and which many economists say remains greatly undervalued.

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Which Countries Will Lead World Growth?

The U.S. will fuel some growth in the coming years through exports to China and emerging markets but what other part of the world will lead the global recovery?

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