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The World Economy Is Doing Well—This Is Bad News for Central Bankers
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The global economy is showing vigor, with business surveys this week pointing to a widespread revival in growth despite rising borrowing costs and elevated energy and food prices, a sign that central banks may need longer than anticipated to bring inflation under control.
Data from the U.S., China and Europe have shown surprising vitality in these regions’ economies since the start of 2023, confounding predictions from the World Bank and other economists that the global economy was set for one of its weakest years in recent decades.
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