Economic Growth Amid Covid-19
Aktualisiert: 17. Mai 2020
The COVID-19 pandemic in terms of new infections is slowly running out of steam proving the effectiveness of containment policies. This leaves us with an economic downturn last seen during the Great Depression and surpassing that experienced a dozen years ago during the Global Financial Crisis.
The global economy is projected to contract by roughly -3% in 2020 and while we are currently being politically polarized by the easing measures taken and the most fruitful pole position for the upcoming recovery phase, it's worth to stand still and reflect about the economic damage caused.
Humans tend to fetishize media headlines and often neglect to ask why a topic is of certain importance. Global GDP to name one. Global GDP as aggregation has limited explanatory power as – last I checked – the world is not led by one single policymaker nor are different economic systems reacting with the same magnitude to external shocks and their counter-measures. Therefore asking about global economic impacts is just as valuable as some random chitchat. Don't get me wrong, I enjoy having them as much as everyone else, but when it comes to committing money (might be in form of IRA's) we should try to distinguish between media determined views and the distinct outcomes on a case-by-case/country-by-country basis.
To promote market visibility in this fuzzy time, you will find below an interactive world map showing the expected 2020 GDP growth rates per country. The underlying data has been scrapped from the latest IMF World Economic Outlook (April 2020).
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hint: if you can't see the map below, you might have an old browser.
Click here in this case: plotly.com/~alessandro.devito/41/