Waning Economic Recovery Fuels Global Uncertainty
By MARK WHITEHOUSE, MARCUS WALKER And JOANN S. LUBLIN
The global recovery is still on track, but it’s looking increasingly likely to be a long slog for much of the developed world.
Just over a year after the recovery started, its initial vigor has abruptly subsided, thrusting the world into a new period of uncertainty. Hopes of a U.S.-led recovery have faded as American consumers retrench. Bursts of growth in Japan and Germany are waning or expected to do so. China and other big developing nations are still growing strongly, but at a slower rate than they were not long ago.
“We were waiting for the second stage of the rocket, and it just fizzled out,” says Ethan Harris, head of developed economics research at Bank of America Merrill Lynch in New York.