Americans’ hunger for world goods drives global recovery
A burst of money is gushing out of the U.S. economy and reverberating around the world, driving the global recovery to an extent it has not seen in decades and giving businesses confidence to invest to meet the the huge American demand.
The US economy, supercharged by stimulus measures worth nearly $ 6 trillion and hungry for world goods, is playing the role played by China in the aftermath of the 2008 financial crisis, economists say.
While other countries largely welcome an explosion in demand from the world’s largest economy, the force of America’s expansion is ricocheting off financial markets and causing upheaval around the world, such as bottlenecks. strangulation in transport in East Asia, effects on currencies and exploding prices of raw materials.
“We are seeing a wave of inflation coming,” said Angelo Trocchia, managing director of Italian eyewear company Safilo Group SpA, whose plant in China is producing at full capacity and facing higher prices for materials such than plastic. “We need to know what the central banks are going to do. “
In the mid-2000s, the United States was the main engine of global growth, until China’s explosive expansion provided a second, and often the first, engine of the global economy. Now China, while continuing to grow strongly, is expected to slow down later in the year after its rapid return from the pandemic, as its government seeks to curb credit. The slowing economic recovery in Europe, weighed down by weak consumer spending, is also helping to dampen global inflation and demand.