Global Economic Recovery is Picking Up Speed, but Risks Remain

The global economic recovery is picking up speed, but there remain risks. The global economy should grow roughly 5 percent in 2021, driven by growth in the United States and China. The world’s two largest economies are seeing accelerated growth. The United States should see first quarter growth eclipse 6 percent (seasonally adjusted annual rate), led by additional fiscal stimulus and the broad lifting of COVID-related restrictions. Monetary policy remains accommodative, which should help to further growth. Finally, consumer and business confidence is roaring back, as vaccination rates increase and consumers appear anxious to spend. The United States is set to grow 6.3 percent during the year.

In this month’s economic outlook report from IPC, you will find U.S. and European data on economic growth, employment, Manufacturer’s Sentiment (PMI), manufacturing capacity utilization and end markets for electronics.