Economist Intelligence Unit
Concerns about the risk of a double-dip recession, which roiled financial markets in mid-2010, have given way to a more optimistic outlook and a renewed phase of risk-taking. The tone of economic data in the US remains lackluster, but overall the picture is one of a continued expansion into 2011 rather than a renewed contraction of output. Meanwhile, concerns in mid-2010 about a slowdown in China stemming from a contraction in the property market have been allayed by renewed strength in a range of indicators, including manufacturing and trade data. Now the main concern in China stems from growth being too strong, creating inflationary pressures and possibly causing policymakers to respond by tightening policy too abruptly.