(Bloomberg) — The best is already over for a global economic recovery that started off at a sprint and is turning into a slog.
That’s the warning from Wall Street economists heading into the final months of a traumatic year. Some $20 trillion of stimulus from governments and central banks has pulled the world’s economies most of the way back to pre-pandemic levels. But for multiple reasons, the last stretch is set to be the hardest.
Policy makers could dial back the fiscal support that’s been key to recovery — as they’ve already done in the U.S. Temporary job cuts may harden into permanent ones, a worry compounded this week when corporate giants Walt Disney Co. and Royal Dutch Shell Plc fired tens of thousands of workers. And the virus itself is spreading faster, and forcing governments to reimpose lockdowns, as cold weather arrives.