- Strengthening US economy prompted the Fed to raise the policy rate
- The UK records highest inflation rate since July 2014
- China clocks better-than expected trade surplus despite rising protectionistsentiments in trade partner countries
- Rising oil and food prices force inflation up globally
A year back, a floundering global economy was trapped in a vicious cycle of low growth and even lower inflation. The investment was subdued, political risks high, and falling oil prices and unprecedented fiscal stimulus failed to kickstart demand. Today, an uptick in growth suggests a recovery is under way, though risks abound.
Despite the looming uncertainties over protectionist policies in the US and Brexit in the UK, the two economies posted healthy growth in Q4 2016, while the Eurozone clocked stable growth. Even as Japan continued making a modest recovery, China posted better-than-expected growth numbers. Inflation rose in all these economies in January.