September 2011 Update for TIGER: Tracking Indexes for Global Economic Recovery

Editor’s Note: In collaboration with the Financial Times (FT), Eswar Prasad and Karim Foda of Brookings have developed a set of composite indexes which track the global economic recovery. The Financial Times has produced the Tracking Indexes for the Global Economic Recovery (TIGER) interactive map, which appears on the FT Web site.

The global economic recovery is in real danger of skidding off course.

The September 2011 update of the Brookings Institution-Financial Times Tracking Indexes for the Global Economic Recovery (TIGER) indicates that the global economic recovery has hit a rough patch in its struggle to regain momentum after a series of adverse shocks. The general picture among G-20 economies is now one of slowing growth, swooning financial markets, and declining consumer and business confidence.

The updated interactive map below displays how fast individual G-20 economies are faring in global economic recovery. Underneath the map, links to updated key indicators display how fast those indicators are recovering for advanced economies, emerging markets and a composite total.

Click on an individual country in the map to view charts for the main TIGER indexes for that country and charts for the indicators that make up the indexes, which are broken down by real activity, financial and confidence indicators.

As well as tracking country performance, the TIGER indexes also track the performance of key indicators across groups of advanced economies, emerging markets and a composite total. Click on the following links to view the updated charts for the following key indicators:

Real Activity Indicators
Financial Indicators
Confidence Indicators

For detailed information on the composition and construction of the indexes and a comprehensive description of the data and source information, please refer to the updated technical appendix.

Main highlights from the September 2011 Update:

  • The Overall Growth Index has weakened over the course of this year. Debt crises, weak employment growth and policy dithering in the major advanced economies have exacerbated global economic uncertainty. The perception of rising risk and inadequate policy responses has shaken financial markets and dented confidence around the world.
  • Emerging markets continue to perform well but remain under pressure, with concerns about persistently high inflation and, in some cases, frothy asset markets.
  • Emerging markets may find it difficult to continue being the drivers of global growth for much longer if advanced economies’ policies fail to restore their own economic growth and, instead, just add to global financial instability.
  • The world economy is entering a difficult and dangerous phase, where there are no easy or costless policy solutions but policy paralysis also carries enormous risks of unraveling the feeble recovery.

Read the full analysis and commentary: Why the Global Economic Recovery is in Trouble