Charting the Global Economy: IMF Upgrades World Growth Forecast
The International Monetary Fund again marked up its forecast for 2021 world economic growth as advanced nations make greater strides vaccinating populations against the corornavirus.
Inflation pressures are building in the U.S. and China, the world’s largest economies, while industrial output in Germany and France weakened in February during heightened restrictions to contain Covid-19.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
A surprise U.S. drive to overhaul international corporate taxation promises a new era for governments to capture a bigger tax take from some of the most successful global businesses -- if only the rest of the world can agree.
The global middle class shrank last year for the first time since the 1990s, with about 150 million people slipping down the economic ladder.
Producer prices climbed in March by more than forecast, indicating inflation pressures are building in the production pipeline. The producer price index jumped 4.2% from a year ago, when the pandemic caused inflation to slow.
Economists are once again ratcheting up their U.S. growth forecasts as a fresh injection of government aid, rising vaccination rates and looser business restrictions combine to provide a bigger tailwind for economic activity.
Low-income Americans bore the brunt of job losses when the pandemic arrived. Now they’re getting hit hardest by price increases as the economy recovers.
Germany and France, the euro area’s two largest economies, both saw unexpected declines in industrial production in February, suggesting that coronavirus restrictions are increasingly harming parts of the economy that have proved resilient so far.
China will contribute more than one-fifth of the total increase in the world’s gross domestic product in the five years through 2026, according to Bloomberg calculations based on IMF forecasts.
China’s producer prices climbed the most since July 2018 as commodity costs surged, a worrying sign for policy makers seeking stable inflation and adding to global risks.
Progress on the rollout of coronavirus vaccines has brightened the global economic outlook for 2021, but that boost isn’t being distributed equally across Asia.
Initiatives to tax rich people are gaining support throughout Latin America, the world’s most unequal region, as it struggles to recover from its worst recession in two centuries.
Emerging market exporters may ride the stimulus of other economies -- Mexico, Chile and Brazil stand to benefit the most for relatively high exposure to the U.S. and China, according to research by Bloomberg Economics.
©2021 Bloomberg L.P.