Economics Weekly by Lloyds TSB

Fears are growing that the global economic recovery is already running out of steam. A plethora of economic data in a number of countries over the last month or so have shown that economic growth is slowing. World growth still on track

Fears are growing that the global economic recovery is already running out of steam. A plethora of economic data in a number of countries over the last month or so have shown that economic growth is slowing. In the US, the housing market is under renewed downward pressure as official support is gradually withdrawn. At the same time, US employment growth remains sluggish. In Europe, the problems of Greece, Portugal, Italy and Spain dominate the agenda as high levels of government debt have led to a crisis of confidence in financial markets about sovereign risk. Even in the fast growing emerging market economies, survey data suggest that the pace of growth is easing. But this is not in fact unusual: no recovery occurs in a straight line, and this one is no exception. This means that setbacks during the recovery phase should be expected and are not a reason for doubting it and expecting a double-dip.