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Fiscal outlook favours US and China over Europe and India

While the COVID crisis has prompted an unprecedented fiscal response worldwide, there have been major differences between economies. The US saw large and immediate support, which has already expired without disastrous consequences. China’s infrastructure boost has been effective, and we think it can be scaled back without derailing the recovery. But much of Europe is still on life support, which is set to be scaled back. And the Indian government will continue to do very little.

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