COTD: Chart of the Day The World Bank published its latest Global Economic Prospects report on Monday, providing us with another glimpse of the expected economic fallout of the COVID-19 pandemic. According to its revised forecasts, the global economy will shrink by 5.2 percent this year, which would mark the deepest recession since World War II. “This is … More COTD: COVID Growth Impact – Statista
US manufacturing output fell by a post-war record of 8.1% in the three months to April. We will know if April proves to be the bottom We next week as Markit PMI has a 90% correlation with the official data, and May flash PMI data are updated next week.
Click on video Massive fiscal spending and swift Congressional action against COVID-19 differ starkly from the Great Depression. Insights by Blu Putnam. — Bloomberg QuickTake (@QuickTake) May 11, 2020
By Gary Evans and Jon Custer Custer Consulting Group Summary The Atlanta Fed’s GDP Now is estimating a -34.9 percent Q2 GDP print, which is 3.5x the largest quarterly decline in the post-WWII economy If realized, the 11.3 percent non annualized first-half GDP collapse in 2020 will approach the worse year of the Great Depression, … More Depression Data But Depression Not The Base Case
In context, not surprising given global economy was shuttered. What matters is the strength of the rebound as economies reopen. OUCH! German Industrial Production had historic plunge in March. Total industrial output – comprised of output in manufacturing, energy and construction – crashed 9.2% in March from Feb. Industrial output fell 11.6% YoY. pic.twitter.com/8D0ApYmP1p — … More German March Industrial Output Plunges Over 9 Percent
Real gross domestic product (GDP) decreased at an annual rate of 4.8 percent in the first quarter of 2020 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2019, real GDP increased 2.1 percent. The decrease in real GDP in the first quarter reflected negative contributions from personal … More U.S. GDP Declines 4.8% Annualized In Q1 2020
By Gary Evans and Jon Custer Here’s some very good background from Centre for the Study of Financial Innovation. It helps in understanding how the economy may look on the other side. These are mainly British economists, including George Magnus, world class and who I worked with at UBS. A must listen and read, folks.
The following table is from the International Monetary Fund’s (IMF) recently released World Economic Outlook (WEO).
Bloomberg’s Stephanie Flanders speaks to U.S. economist Adam Posen and asks how governments and economists have measured up to the challenge of the coronavirus. Like this video? Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg?sub_…
The Federal Reserve cut its key policy interest rate to zero joining forces with other central banks to keep the global financial system from seizing up due to fallout from the coronavirus pandemic. The Fed acted quickly after the US government bond market began to convulse late in the week with interest rates spiking after … More Federal Reserve Brings Out The Nukes