Global Chartbook: Is Global Recovery Still in the Cards?

The policy response to the financial crisis—unprecedented monetary easing, expansionary fiscal policy and the shoring up of private-sector balance sheets—led to stabilization in economic activity in mid-2009 that subsequently morphed into global recovery. Although IP in the OECD countries currently stands nearly 10 percent below its pre-recession peak, the rebound has been quite sharp, at least … The policy response to the financial crisis—unprecedented monetary easing, expansionary fiscal policy and the shoring up of private-sector balance sheets—led to stabilization in economic activity in mid-2009 that subsequently morphed into global recovery. Although IP in the OECD countries currently stands nearly 10 percent below its pre-recession peak, the rebound has been quite sharp, at least when measured by the year-over-year growth rate. Among the major regions of the world, economic growth in Asia has been strongest to date. The financial systems of most Asian economies were not nearly as leveraged as those of their western counterparts, so banks in the region were able to ramp up lending again. In addition, most Asian governments responded to the crisis with expansionary fiscal policy. North American economies are growing again as well. The U.S. economy has been in recovery mode for roughly a year, and a self-sustaining expansion appears to be under way in Canada. Europe lags other major regions of the world in terms of economic recovery, but growth rates in European economies have been positive, albeit weak, over the past few quarters. Germany continues to lead the pace of recovery in the Eurozone with consistently strong annualized growth rates in GDP, counterbalancing lingering fallout from the Greek debt crisis. Thank you for your interest in Wells Fargo’s Economic Commentary by email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by email registration page: http://www.wellsfargo.com/economicsemail.

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