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But double-digit inflation has forced India’s central bank to boost interest rates, thereby making borrowing costlier for consumers and businesses. Growth slowed to an annual rate of 4.4 percent in the April-June quarter. That was down from an average rate of 8 percent from 2003 through 2011.
World Bank President Jim Yong Kim said this week that he’s concerned about the Fed’s impact on emerging economies. Kim noted, though, that some of those economies must address their own underlying weaknesses.
In an interview with The Associated Press, he pointed, for example, to India.
"India is famous for its bureaucracy and the difficulty of actually doing business," Kim said.
By contrast, in advanced economies rates remain low and growth steady. Mario Draghi, president of the European Central Bank, helped shore up Europe’s economy by declaring last year that he would do "whatever it takes" to save the euro currency.
The ECB later pledged to buy government bonds from troubled nations such as Italy and Spain. That pledge has eased borrowing costs.
The 17 nations that share the euro finally emerged from recession in the second quarter of the year after shrinking for six straight quarters.
Economic data since then suggest that a modest recovery will endure. Consumer confidence is up. Manufacturing surveys point to higher output. Many stock markets in the region are up this year.
Likewise, in Japan, Prime Minister Shinzo Abe has increased government spending and pushed the Bank of Japan to step up bond purchases to try to jolt the economy out of two decades of stagnation.
His efforts seem to have produced some tentative results. Japan’s economy expanded at a 2.6 percent annual rate in the April-June quarter after growing at a 3.8 percent rate in the first three months of the year.
But the government’s debt has topped 1 quadrillion yen ($10.4 trillion. Japanese leaders appear divided over whether to proceed with a sales tax increase.
The U.S. economy has expanded steadily if modestly since its recession ended more than four years ago. The Fed’s low-rate policies are credited with spurring home and auto purchases and creating jobs. The U.S. economy grew at a 2.5 percent annual rate in the second quarter, the government has estimated.
But consumer spending hasn’t rebounded as much as in previous recoveries. That weakness has deprived the global economy of one of its long-standing engines: the American shopper. The world economy now depends on multiple sources of growth.
"There is no single economy that dominates the global economy anymore or will solve global problems ... by getting its act together on its own," says Barry Eichengreen, an economics professor at the University of California, Berkeley.
AP staff writers Joe McDonald in Beijing, Elaine Kurtenbach in Tokyo, Nirmala George in New Delhi and Marjorie Olster in Washington contributed to this report.
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