The coming global economic boom could have a sting in the tail
Supply shortages are acute in America
THE GLOBAL economy is entering unfamiliar territory. After a decade of worries about inadequate demand and spending power in the aftermath of the global financial crisis, signs of insufficient supply are now emerging. A lack of goods, services and people means that red-hot demand is increasingly met slowly or not at all. There are already signs that supply bottlenecks may lead to nasty surprises which could upset the post-pandemic recovery. Nowhere are shortages more acute than in America, where a boom is under way. Consumer spending is growing by over 10% at an annual rate, as people put to work the $2trn-plus of extra savings accumulated in the past year. More stimulus is still being doled out.
This article appeared in the Leaders section of the print edition under the headline “The bottleneck economy”
Leaders May 15th 2021
From the May 15th 2021 edition
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