May 18, 2020

THE DEEP ECONOMIC FALLOUT FROM GLOBAL DISTANCING

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

The global spreading of the Corona virus is keeping the world in suspense. Global confirmed infections exceed.
THE DEEP ECONOMIC FALLOUT FROM GLOBAL DISTANCING
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • Widespread shutdowns amid the Covid-19 epidemic are set to send the global economy into contraction by at least 4% this year, the deepest recession since WWII. The euro area economy will be hit particularly hard (-8%).
  • The unprecedented slump in activity in the first half of 2020 may be followed by a rebound from H2 onwards. But it will take until 2022 or beyond for advanced economies to recoup pre-crisis levels of activity.
  • Risks remain clearly skewed to the downside. A prolonged lockdown would deepen the 2020 contraction; further waves of infections would result in renewed restrictions, which may delay the recovery even into next year.
  • With high uncertainties, rising unemployment and impaired corporate balance sheets dragging on demand for longer, subdued price pressures will prevail this year and next. Soaring public debt levels, ultra-accommodative monetary policies and the threat of deglobalisation may pose upside risks to inflation only in the medium to longer term.

Download the full publication below

THE DEEP ECONOMIC FALLOUT FROM GLOBAL DISTANCING

Also interesting

Coronavirus model
March 5, 2021
Market Commentary

COVID-19 FACTS & FIGURES

Up-Trend-Line-Graph-and-Silhouette-Oil-Pumps-at-Oil-Field-with-Sunset-Sky-Background
March 5, 2021
Focal Point

Oil: strong, but not permanent price increase

Cubes-wood-arrows-up-down-red-and-green
00:06:05
March 4, 2021
Podcast

The Spotlight ǀ Generali Investments Podcast: Reflation boon and bane