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The Future of the Global Recovery

As major economies around the world return to growth, the discussion has shifted from recession to recovery. While the recovery has arrived, there are reasons to question its strength and sustainability.

published by
Foreign Exchange with Daljit Dhaliwal
 on August 28, 2009

Source: Foreign Exchange with Daljit Dhaliwal

As major economies around the world return to growth, economists and policy-makers shift their focus from recession to recovery.  Uri Dadush discusses these developments, explaining that “we are at the turning point, or perhaps past the turning point...The big question...is not whether we are at the beginning of a recovery; the big question...is how strong a recovery it is going be, and whether it is going be sustained.”  Threatening the global recovery is reduced demand, “because the consumer, in many countries, remains very reluctant to spend.” 

The epicenter of the financial crisis, the United States, faces a more protracted recovery than many other countries.  “Even though many economies were worse hit than the United States, initially, they are actually in a position to recover more rapidly whereas the United States will take more time.”

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