CIAO DATE: 03/2010
February 2010
Following the worst recession since the 1930s, the US, UK and Eurozone economies have all now returned to positive growth. With the boost from policy stimulus and the inventory cycle peaking, however, this raises questions about the sustainability of the current rebound. The key features of the adjustments underway in these economies suggests that there will be a wide divergence in the pace of expansion over the coming two years, reflecting differences in the structural problems to be addressed and national policy responses in the wake of the crisis. While the recoveries in both the US and Europe will be relatively muted compared to recent historical experience, the US is likely to be the growth leader, reflecting the more dynamic nature of its economy and financial sector.
Resource link: Is the recovery sustainable in the US and Europe? [PDF] - 217K