The US economy led a global recovery from the coronavirus-induced slowdown, with its “aggressive” fiscal stimulus helping it to rebound at a quicker pace than it did after the 2008 financial crisis, said the Institute of International Finance.
The world's largest economy made the most complete recovery, compared with other Group of 10 industrialised economies, with both consumption and investment in the third quarter of 2021 rising above their levels at the end of 2019, the IIF said in its Global Macro Views report.
“This remarkable accomplishment is due primarily to substantial fiscal stimulus, which dwarfs in size what was done after the Great Recession,” the IIF report authors said.
The report also surveyed the global recovery from pandemic-induced slowdown and assessed 21 advanced economies and 23 emerging markets.
The US economy last year grew at the fastest pace since Ronald Reagan's presidency in the 1980s, bouncing back with resilience from 2020's brief but devastating coronavirus-induced recession.
The country's gross domestic product expanded 5.7 per cent in 2021. It was the strongest calendar-year growth since a 7.2 per cent surge in 1984 after a previous recession.
The economy ended the year by growing at an unexpectedly brisk 6.9 per cent annual pace from October through to December as businesses replenished their stocks, the US Commerce Department reported on January 27.
The US economy is estimated to have expanded 5.6 per cent last year, according to the International Monetary Fund. It is forecast to expand 4 per cent in 2022, which is a 1.2 percentage point lower than the IMF’s October projection. The fund expects US growth to reach 2.6 per cent in 2023.
“The US staged a remarkable recovery from Covid, especially given that the pandemic is far from over,” the IIF said.
Real private consumption returned to its pre-Covid levels in the third quarter of last year, a “truly remarkable feat that was never accomplished in the wake of the 2008 crisis”, they said.
Fixed and residential investment in the US have similarly made “remarkable” recoveries.
“The US stands out vis-a-vis its G10 peers also in terms of gross fixed capital formation, where it is again the best performer,” the IIF said.
However, the global economic recovery from the pandemic is “highly uneven”, with an investment slump weighing on medium-term growth prospects outside the US, according to the IIF.
The euro zone appears to be headed for a major investment slump, on par with what is playing out in some emerging markets in Africa, South America and Asia, the IIF survey found.
“The euro zone seems to have entered a disinvestment cycle, comparable in severity to EMs like South Africa, Colombia, Malaysia and the Philippines,” the IIF said. “This disinvestment cycle runs the risk of transforming the Covid shock into a medium-term drag on growth.”
The euro zone is also on the “weaker end of the spectrum”, compared with other G10 nations, in terms of real private consumption and gross fixed capital formation, the survey found.
“It is true that the euro zone saw a more pronounced run-up in investment ahead of Covid, so perhaps part of the weaker picture now simply points to overinvestment before the pandemic,” the IIF said.
“We are not inclined to believe this explanation, however, and see mounting risk that the euro zone may be entering a prolonged investment slump, which could extrapolate the Covid shock to weaker medium-term growth,” they said.
Advanced economies, which are estimated to have grown 5 per cent in 2021, are now set to grow 3.9 per cent this year, 0.6 per cent lower than estimated in October, the IMF said in its latest World Economic Outlook report in January.
The growth is expected to moderate further to 2.6 per cent, which is still a 0.4 per cent improvement from the previous forecast.
Match info
Wolves 0
Arsenal 2 (Saka 43', Lacazette 85')
Man of the match: Shkodran Mustafi (Arsenal)
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”
UAE currency: the story behind the money in your pockets
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Alaan%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Parthi%20Duraisamy%20and%20Karun%20Kurien%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%247%20million%20raised%20in%20total%20%E2%80%94%20%242.5%20million%20in%20a%20seed%20round%20and%20%244.5%20million%20in%20a%20pre-series%20A%20round%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
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MATCH INFO
Barcelona 2
Suarez (10'), Messi (52')
Real Madrid 2
Ronaldo (14'), Bale (72')
The details
Heard It in a Past Life
Maggie Rogers
(Capital Records)
3/5
MATCH INFO
Mainz 0
RB Leipzig 5 (Werner 11', 48', 75', Poulsen 23', Sabitzer 36')
Man of the Match: Timo Werner (RB Leipzig)
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Villains
Queens of the Stone Age
Matador
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Five%20calorie-packed%20Ramadan%20drinks
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The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
Race card
5pm: Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m
6pm: Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
6.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
7pm: Maiden (PA) Dh80,000 (T) 1,200m
7.30pm: Handicap (TB) Dh100,000 (T) 2,400m
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
RESULTS
Light Flyweight (48kg): Alua Balkibekova (KAZ) beat Gulasal Sultonalieva (UZB) by points 4-1.
Flyweight (51kg): Nazym Kyzaibay (KAZ) beat Mary Kom (IND) 3-2.
Bantamweight (54kg): Dina Zholaman (KAZ) beat Sitora Shogdarova (UZB) 3-2.
Featherweight (57kg): Sitora Turdibekova (UZB) beat Vladislava Kukhta (KAZ) 5-0.
Lightweight (60kg): Rimma Volossenko (KAZ) beat Huswatun Hasanah (INA) KO round-1.
Light Welterweight (64kg): Milana Safronova (KAZ) beat Lalbuatsaihi (IND) 3-2.
Welterweight (69kg): Valentina Khalzova (KAZ) beat Navbakhor Khamidova (UZB) 5-0
Middleweight (75kg): Pooja Rani (IND) beat Mavluda Movlonova (UZB) 5-0.
Light Heavyweight (81kg): Farida Sholtay (KAZ) beat Ruzmetova Sokhiba (UZB) 5-0.
Heavyweight (81 kg): Lazzat Kungeibayeva (KAZ) beat Anupama (IND) 3-2.