World economy in strong upswing

<p>Kia ora,</p><p>Welcome to Monday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news a sharp V-shaped economic recovery is worldwide now, making the 2020 downturn one of the shortest recessions on record.</p><p>In China, their tax take is recovering sharply in 2021, basically split between Beijing and local governments. Income taxes are up an impressive +27%, and their GST is up +24% year-on-year. This is clear evidence the Chinese economy is on a good upswing.</p><p>In Japan, there is also some <a href="https://www.japantimes.co.jp/news/2021/05/21/business/convenience-stores-sales-april-increase/" target="_blank"><strong>evidence</strong></a> that consumers are feeling more bullish that they have for a long time.</p><p>In Europe, we may be seeing a revival in their overall economy too. The <a href="https://www.markiteconomics.com/Public/Home/PressRelease/04e1afefbdbe4b96a2b8bfcf1e357233" target="_blank"><strong>May flash PMIs</strong></a> shows demand surging at its fastest rate for 15 years. Both manufacturing and services are benefiting, with strong rises for new orders, and employment growth seems to be following. They also recorded their sharpest rise in output price inflation on record. The <a href="https://www.markiteconomics.com/Public/Home/PressRelease/303b55f5efbf4ee4bc241b00eb2652fb" target="_blank"><strong>German rise</strong></a> is at the core of these gains, although other countries are now showing faster expansions. The <a href="https://www.markiteconomics.com/Public/Home/PressRelease/ff44217f7a3e44bbb57983543fa55e75" target="_blank"><strong>UK</strong></a> and <a href="https://www.markiteconomics.com/Public/Home/PressRelease/f57981ccb95040c183e450b6f9bad079" target="_blank"><strong>France</strong></a> are among them.</p><p>All this positivity among business prospects is <a href="https://ec.europa.eu/info/sites/default/files/flash_consumers_2021_05