Those inclined to have reservations about the robustness of the US recovery would wonder whether earnings growth expectations might be somewhat optimistic (and, for that matter, whether profits were actually as strong as commonly believed in the late phases of the expansion).
Since these early May days one year ago, the economic outlook has improved, both on the global level and at the euro area level. Yet, in my view, the economic environment is characterised by some divergences. I see two types of divergences. At the global level, we currently experience what the IMF in its latest World Economic Outlook calls a two-speed recovery.