America’s fragile recovery
A year of living pigheadedly
America will be a tad cheerier than Europe in 2012—but it should be so much better still
Dec 17th 2011 | from the print edition
THE euro zone is probably already back in recession. The emerging markets are starting to show signs of slowing down. Thank heavens, one might say, for America, which is finishing the year with the nearest thing to good economic news to be found on this benighted planet.
Growth in the third quarter clocked in at around 2%, and in the fourth quarter it looks likely to be significantly stronger than that. Unemployment is edging downwards, the Dow is back up at around 12,000, house sales are rising and spending on consumer durables, most notably cars, is improving at a fairly cheerful clip. Might America, as so often in the past, provide a locomotive for global growth in 2012?
Sadly not. That is partly because the economy, on closer inspection, is less speedy than it first appears. But it is also because America’s politicians look likely to do nothing whatsoever to help growth in 2012. Indeed, the immediate priority is to stop them doing yet more harm to it.
Read the full story here: The Economist
- “Fragile and Unbalanced” (economistsview.typepad.com)
- No country immune from economic crisis: Lagarde (ibnlive.in.com)
- No Good Cheer from Santa Claus for Bumpy 2012 (dinmerican.wordpress.com)
- Recession in Europe, not in North America: five predictions for 2012 (thestar.com)