The global economy is currently in a state of recovery from the effects of the COVID-19 pandemic. The pandemic has caused significant disruption to global trade and economic activity, with a resulting sharp decline in Gross Domestic Product (GDP) worldwide. Although the economic outlook is slowly improving, the situation remains fragile and uncertain.

The primary factor driving the current state of the global economy is the gradual easing of lockdown measures in many countries. As businesses slowly begin to open and people resume their daily activities, economic activity is slowly picking up. In addition, government stimulus packages have helped to offset some of the economic damage caused by the pandemic, including direct payments to households, loan guarantees, and tax relief.

The second factor driving the global economy is improving the labour market. As restrictions on businesses are gradually lifted in many countries, more businesses are hiring, and wages are slowly rising. This has helped to prop up consumer spending, which has been a key factor in driving economic growth. In addition, many governments have implemented programs to help businesses retain their employees and stabilise wages.

The third factor driving the global economy is the rise in commodity prices. Commodity prices have risen steadily since the pandemic began, driven by demand from emerging markets and a rebound in manufacturing activity. In addition, the weak US dollar has also contributed to the rise in commodity prices, as it has made commodities more attractive for investors.

Finally, the fourth factor driving the current state of the global economy is the rise in the equity markets. Many countries have seen a strong rebound in their equity markets since the pandemic began, with the US stock market reaching a record high in 2021. This has been driven by a combination of factors, including a rebound in corporate earnings and renewed optimism about the economic outlook.

Overall, the current state of the global economy is one of recovery, with a gradual improvement in economic activity and the labour market. This has been helped by government stimulus, rising commodity prices, and a strong equity market. Despite the improving economic outlook, the situation remains fragile and uncertain, and governments and businesses must continue to take action to ensure a sustained recovery.