The much-awaited quantification of the Covid-19 lockdown’s cost to economies began to trickle through last week, with the US and Europe experiencing their biggest second-quarter declines on record.
For the moment, however, other indicators that give us a sense of how the domestic economy is doing are sending conflicting messages. While the July Absa Purchasing Managers’ Index declined slightly compared to the previous month, it remained in the expansionary territory above 50 and there was another month-on-month improvement in conditions in the manufacturing sector.
He points out how much the Great Recession of 2008/09 pales in comparison with the record-breaking 32.9% and 40% declines in GDP experienced by the US and the Eurozone in the second quarter .The 12.1% quarter on quarter decline in Eurozone growth, which translates into the 40% annualised rate, is the largest on record. ING says: “While GDP has already started to climb thanks to reopenings, a V-shaped recovery is wishful thinking.
Fitch warns that repeated waves of new infections and renewed nationwide lockdowns could result in “a very sluggish recovery”. Medical breakthroughs, however, could result in a rapid normalisation of economic activity though, the rating agency adds.
Россия Последние новости, Россия Последние новости
Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей
BUSINESS MAVERICK: Commodities’ Covid-19 conundrum: Miners have mixed results, oil majors sinkA tale of two commodities asset classes has broadly emerged under the Covid-19 pandemic. Big-league miners such as Anglo American have had a hit in profits while weathering the storm. By contrast, oil majors have had to make massive asset write-offs as their earnings sink like stones.
Прочитайте больше »
BUSINESS MAVERICK: Covid-19 Insurance Fiasco: Some disasters can create opportunitiesPublic sentiment is overwhelmingly in support of the hundreds of restaurants and hospitality businesses denied cover by their insurers. Business Maverick chats to the main man in their corner, and asks him what is public loss adjusting anyway?
Прочитайте больше »
BUSINESS MAVERICK: Shining a spotlight on Covid-19 price gougingSouth Africa’s competition authorities have been seized with energy when it comes to investigating allegations of price gouging. This has both positive and negative implications.
Прочитайте больше »