Guest post by Eswar Prasad, Karim Foda, and Arnav Sahu on the latest Brookings Institution-Financial Times Tracking Indices for the Global Economic Recovery (Tiger), which combines measures of economic activity, financial variables and indicators of confidence
The global economic recovery remains uneven and wobbly but finally appears to have built up some staying power.
The worst may be over, but prospects for a durable and sustained recovery hinge on whether national governments demonstrate their commitment to substantive structural reforms.
The Brookings-FT Tiger index shows advanced economies are gradually gathering growth momentum while emerging market economies are cooling off. This has led to some degree of convergence in the short-term growth prospects of these two groups of economies. Reflecting this, financial markets in emerging economies took a beating in recent months, although equity markets in some countries like India and Indonesia are on the rebound.