The world economy has entered the second quarter in good shape. Business surveys edged higher in March and point to strong global growth in Q1. Consumer confidence in advanced economies has risen to a ten-year high, consistent with a big increase in household spending growth. Headline inflation has rebounded sharply in every major economy, though in many cases core inflation remains low. Only in the US do rising wage pressures look set to push underlying inflation significantly higher. Meanwhile, the recovery in emerging economies is broadening out. Higher prices are helping major commodity exporters, including Brazil and Russia, return to growth. And activity in India is recovering from last year’s demonetisation shock. The major exception is China, where the latest rebound in growth is likely to fade as policymakers focus on credit risks.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services