ECONOMIC AND MARKET OVERVIEW
Global
The global economy is climbing out from the depths to which it had plummeted during the Great Lockdown in April.
This is the sentiment of the International Monetary Fund ( as expressed in their October 2020 World Economic Outlook The rate at which economies are recovering have, however, now been hampered by the so called “second waves” of COVID 19 infections in the northern hemisphere Many countries have slowed re openings and some are reinstating partial lockdowns to protect susceptible populations While recovery in China has been faster than expected, the global economy’s long ascent back to pre pandemic levels of activity remains prone to setbacks
The global economy is now projected to contract by 4.4% in 2020 which is less severe than the IMF forecast of 4.9% made in June 2020 It’s clear from the table below that the strong economic rebound in emerging markets is skewed by China’s early and strong recovery. Many emerging markets are in a far worse position than their developed counterparts, and will take several years to return to their 2019 levels of economic output.
