“WSJ”: Data from the US, China and Europe show the surprising vitality of their economies. Photo. PAP/Adam Warżawa
The world economy is doing well, and that is bad news for central bankers, the Wall Street Journal wrote on Friday. The paper pointed out that signs of economic recovery from the US to China and Europe are complicating the fight to curb high inflation.
Despite rising borrowing costs and higher energy and food prices, the global economy is doing better, but that means central banks may take more time than expected to control inflation, the WSJ said.
“For central banks, the only message of accelerating economic growth and inflation may be that tightening monetary policy has so far not been enough,” said Barclays Chief Economist Christian Keller.
“Data from the US, China and Europe demonstrate the surprising vitality of their economies and show that the predictions by the World Bank and other economists that the world economy is facing one of the weakest years in recent decades are wrong,” the journal wrote.
He pointed out that this is good news for governments, but worse for central bankers. They will have to raise interest rates more than planned, which could lead to a slowdown in growth later in the year, the American newspaper predicts. (PAP)
Author: Andrzej Pawluszek
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