Banking Strains, Inflation Threaten Global Economic Rebound

A strong services sector is supporting activity around the world, but that strength also fuels inflation

Photo: Jim Watson/AFP/Getty Images

Global economic growth rebounded modestly this month, although stubbornly high inflation and banking stresses weigh on the outlook.

Business surveys published Friday recorded pickups in activity across the U.S. and Europe driven by services providers. Japan saw a similar acceleration aided by the arrival of tourists from China after the lifting of Covid-19 restrictions.

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