March 09, 2021
U.S. Stimulus Set to Turbocharge World Economy as Europe Lags
“ U.S. recovery turbocharged by President Joe Biden’s stimulus package will help power a faster than expected global economic upswing that risks leaving Europe behind, according to OECD forecasts. The Paris-based organization said it now expects global output to rise above pre-pandemic levels by mid-2021 after major economies showed greater resilience at the end of 2020, and as evidence of vaccine efficacy grows and governments add extra demand stimulus.”
Robust Demand for EU’s Social Bonds Defies Rout for Global Debt
“The European Union’s latest offering of social bonds looks set to avoid the collapse of demand seen in recent sovereign debt sales. The bloc pulled in over 61 billion euros ($73 billion) of orders for a 9 billion-euro sale of 15-year debt via banks Tuesday, with the proceeds to be used to help fund a jobs program in the region. Still, it was about half as much as a previous deal for the same maturity in November. Since then global bonds have suffered a sharp selloff.”
By the Numbers: China Lays Out Ambitious Five-Year Targets
“China’s economic planners are used to setting ambitious targets, and its latest five-year plan running to 2025 is no exception. The government is targeting 7% annual growth in R&D spending through 2025, which would bring its total spending to 3.76 trillion yuan ($580 billion) by the end of the period. That’s more than the $548 billion the U.S. spent in 2018, the most recent year for which data is available.”
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