It is perhaps odd that despite gloomy news stories about the
risks to growth the world economy is recovering. And this is a rare
thing, a synchronised global recovery with activity strengthening
in developed and emerging markets for the first time since
2010.
Leading indicators for growth are flashing green. Singaporean
export growth, a barometer of global demand, has hit a two-year
high. Chinese electricity consumption has rebounded.
Arguably Europe's most important economic indicator,
Germany's Ifo business confidence index, is near a three-year
high. In the UK, optimism among manufacturing companies has reached
its highest level since 1995. Surging North American rail freight
volumes point to growing demand. Across the world the regular
economic data are coming in on the strong side of expectations.
