US Consumer Confidence Index Hits Highest Since COVID-19... IMF Says "Economic Recovery Becoming Visible"

US Consumer Confidence in Economic Recovery Hits Highest Since February Last Year
IMF "Possibility of Upward Revision in Global Economic Growth Forecast This Year"

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF)
[Photo by Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The US Consumer Confidence Index, a measure of how optimistic consumers feel about the overall economic situation in the United States, has reached its highest level since February last year, just before the COVID-19 pandemic. This has led to analyses suggesting that the implementation of US economic stimulus measures and the expansion of vaccination efforts are driving the country's economic recovery.

According to the US Consumer Confidence Index released by the Conference Board on the 30th (local time), the confidence index this month recorded 109.7, a significant increase from 90.4 recorded last month. This marks the third consecutive month of growth. Lynn Franco, Senior Director at the Conference Board, stated, "US consumers are viewing the current economic situation and short-term economic outlook optimistically," adding, "This consumer sentiment is expected to translate into increased actual consumption, contributing to economic recovery."

Specifically, the index reflecting consumers' perception of the current economic situation recorded 110.0, up from 89.6 last month, while the index for short-term outlook perception rose to 109.6 from 90.9 last month.

This positive economic recovery outlook aligns with the International Monetary Fund's (IMF) perspective. On the same day, Kristalina Georgieva, IMF Managing Director, stated, "The recent passage of US economic stimulus measures and the raising of vaccination rate targets will also impact the global economic recovery," adding, "Therefore, the world economic growth forecast to be announced next week is likely to exceed the 5.5% growth rate forecast issued in January."

However, there are also warnings about the possibility of economic growth polarization, where the timing of economic recovery differs between advanced and developing countries. According to the IMF, the loss rate of per capita national income compared to before the COVID-19 pandemic is expected to reach 11% in advanced countries but is predicted to be as high as 20% in developing countries. Georgieva noted, "There is a significant difference in the quantity of COVID-19 vaccines secured and the speed of vaccination between advanced and developing countries," adding, "This will also affect the differences in the pace of economic recovery between countries."

Additionally, the IMF expects a slow recovery in economic sectors most severely impacted by COVID-19, such as tourism, and warned that the sharp economic rise in the US could lead to a rapid increase in interest rates.

This content was produced with the assistance of AI translation services.