Concerns over financing record high government deficits and fears of sovereign defaults will dominate the outlook over the medium-term. Finessing a gradual withdrawal of stimulus measures and finding consensus on long-term regulatory oversight and safeguards for the global financial system remain among the largest challenges facing governments of major developed countries. Despite fourth quarter 2009 GDP growth of 5.9% and signs that the pace of job losses slowed in January-February 2010, the US economy is expected to experience a weak recovery. Growth indicators in the euro zone have been inconsistent and recently turned negative again, confirming a fragile recovery. The global recovery is being led by China. China's manufacturing activity grew at a relatively rapid clip in January-February and producer prices rose sharply despite Beijing's recent efforts to curb booming bank lending.