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World economy on the cusp of a new age of prosperity - analysis of Economist, NYT and Mckinsey article

2 news item and one McKinsey article is the reason for this post. First the news. 

 


 

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Piping hot, but with a fragile crust. Global growth, according to one index, is at its highest since the exuberant days of 2006. But today’s booming economy could be destabilized by fallout from three risk areas: the unvaccinated, supply-and-demand imbalances, and the looming withdrawal of government stimulus. (https://www.economist.com/leaders/2021/07/10/the-new-fault-lines-on-which-the-world-economy-rests?cid=other-eml-onp-mip-mck&hlkid=1f8b5ab63d7246b988bc63b65592ed40&hctky=9431270&hdpid=d5a90330-bdac-4cfe-94b2-0d822ed4fa11)

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Inflation 101. Many CFOs are managing inflation for the first time in their careers, as the economic rebound drives up prices for materials, energy, and labor. They are trying tactics including streamlining operations, strategic purchasing, and—yep, you guessed it—raising prices. 

(https://www.nytimes.com/2021/06/18/fashion/watches-holograms-IWC.html?cid=other-eml-onp-mip-mck&hlkid=428be122494e428da11d18edb9b47c01&hctky=9431270&hdpid=d5a90330-bdac-4cfe-94b2-0d822ed4fa11)


Key Takeaway: 

 

 

 

 

 

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Why it matters. The world could be at the dawn of an economic recovery that might add up to 50% to GDP over the next decade. Global economic growth of 3% to 4% is achievable with available technology—no “productivity miracle” needed. The medical advances achieved in response to this pandemic open the possibility that the world can make rapid and unprecedented progress tackling persistent health problems.

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The prosperity scenario is possible. The pandemic demonstrated that there was no trade-off between the virus and the economy; instead, countries that best protected citizens from the health threat also performed the best economically. Trade-offs among growth, sustainability, and equality may prove to be equally illusory. 

Read the article 

(https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/looking-beyond-the-pandemic-could-the-world-economy-gain-more-than-it-lost-to-covid-19?cid=other-eml-onp-mip-mck&hlkid=670657973ad1494e9e2372907e21aa76&hctky=9431270&hdpid=d5a90330-bdac-4cfe-94b2-0d822ed4fa11)




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