Recent tensions in Europe are likely to result in higher borrowing costs and more rapid tightening of fiscal policy in advanced economies. As I will discuss shortly, without countervailing policies, this could lead to a more protracted recovery. Nothing is easy The reality of a policy-led, multi-speed recovery is that the global economy is now bumping up against three limits.
Fourth, uncertainties still loom large with the pandemic raging across the world, and the global supply chain and industry chain are facing a high risk of being disrupted or even broken.