The global economy is stuck in a rut, unable to sustain a decent recovery and susceptible to a sudden stall, according to the latest Brookings Institution-Financial Times tracking index of recovery.
Despite strong financial markets and confidence returning to business and consumers in emerging economies, overall indicators of growth have hardly budged since mid-2011, since when repeated tentative upswings have always been snuffed out by weak data and renewed stress in the eurozone.
Tiger (Tracking Indexes for the Global Economic Recovery) shows the global economy “unable to achieve lift-off and facing the risk of stalling”, said Professor Eswar Prasad, a senior fellow at the Brookings Institution.
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