Charting the Global Economy: U.S. Is Turbocharging the World GDP

(Bloomberg) -- Joe Biden’s $1.9 trillion stimulus plan isn’t just boosting the U.S., it’s also helping economies around the world.

The latest forecasts from the OECD included huge upgrades for 2021, thanks in part to spillovers from America’s big spending program. Yet, empowering women to participate fully in the modern economy would give global growth an even bigger push, according to Bloomberg Economics.

Meanwhile, U.S. consumer inflation remained limited in February ahead of a projected pickup in coming months and China’s economic recovery showed signs of progress after the Lunar New Year.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:

World

A U.S. recovery turbocharged by President Joe Biden’s stimulus package will help power a faster than expected global economic upswing that risks leaving Europe behind, according to OECD forecasts.

Bloomberg Economics has estimated the boost to output if women’s education and employment levels converge with that of men in the same country. Achieving that ambitious goal could add about $20 trillion to world GDP in 2050 relative to a baseline scenario of persistent gender inequality.

The OECD lost a chance to lead by example: Australia’s Mathias Cormann was selected to head the organization, defeating Sweden’s Cecilia Malmstrom in a closely contested race.

U.S.

Prices charged by service providers, those hit hardest by the pandemic, rose in February at the slowest pace in a decade. Combined with a slight moderation in goods inflation during the month, the government’s core consumer price index posted a smaller-than-expected gain from a year earlier. In January, prices of goods climbed the most since 2012.

Consumer sentiment improved in early March by more than forecast, reaching a one-year high as more vaccinations and fiscal relief boosted optimism in the economic outlook.

Europe

The U.K.’s first batch of official trade data since leaving the European Union highlights the early damage done to the flow of goods by Brexit.

France is set to avoid another recession with 1% growth in both the first and second quarters of 2021 as the combination of a curfew and limited restrictions weigh less on the activity than the national lockdown in November, according to statistics agency Insee.

Asia

The Chinese economy appears to have stayed on its recovery track after some softening at the beginning of the year.

Emerging Markets

Brazil’s annual inflation surged to a four-year high in February, leaving the central bank under strong pressure to deliver an outsized interest rate increase at next week’s policy meeting.

South Africa’s economy contracted the most in a century in 2020 as restrictions to curb the spread of the coronavirus pandemic ravaged output and disrupted trade.

©2021 Bloomberg L.P.