Two reports out Monday predict that global growth will struggle to bounce back from the lockdowns, travel restrictions and business closures meant to contain the pandemic.
“While growth in the hardest hit economies may snap back briefly, the momentum will soon fade,’’ the financial research firm warned. It expects the
Hobbling the rebound, IHS predicts, will be a wave of business bankruptcies and cautious spending by consumers trying to repair their household finances and uneasy about resuming old habits that drive economic growth — shopping, eating out, booking vacations and going to movies.
“Government leaders wanted to err on the side of caution, and, as a result, we basically shut down large parts of the economy,” said
Likewise, Deutsche Bank Wealth Management warned Monday that a “hoped-for’’ rebound in the second half of 2020 won’t be strong enough to undo the damage absorbed in the first, at least among the advanced economies of
Economies normally bounce back rapidly — registering so-called V-shaped recoveries — from sudden shocks such as natural disasters. But
Many economists say any recovery is likely to be subdued until the virus has been tamed by a vaccine or effective treatments.
“I don’t believe you can have a credible economic recovery or a V-shaped recovery unless you have the pandemic really largely under control,’’ said
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