Global economic rebound hit by supply squeezes, energy costs and inflation
The sharp global rebound from the coronavirus recession “appears in danger of stalling” amid supply bottlenecks, surging energy prices and rising inflation, according to an exclusive research for the Financial Times.
Global growth showed historic momentum earlier in 2021 but is now slowing in China and the US, the world’s two largest economies, as the threat of Covid-19 still hangs over the global economy, according to the latest Brookings-FT tracking index.
The findings indicate that policymakers will no longer simply be able to boost spending power without serious risks.
“Policymakers in many major economies now face the difficult conundrum of supporting growth while keeping inflation under control, even as they continue to be hit by domestic and external supply disruptions,” said Eswar Prasad, senior fellow at the Brookings Institution.