This Week's State Of The Economy - What Is Ahead? - 07 October 2020

Date: 12 October, 2020 | By : 

U.S Overview - Full Recovery by Mid-2021…With Mitigating Factors

 In the immediate fallout after the lockdowns in the early stages of this pandemic, there was a lot of discussion about the shape of the recovery. From the outset, we have taken the position that consumer spending would snap back fairly quickly due to the unprecedented amount of stimulus that policymakers implemented earlier this year. But, we also argued that it would take some time to fully dig out of the deep hole that the economy fell into earlier this year.

International Overview - Global Growth Outlook Improves Modestly

Our forecast for the global economy has improved, although the upward revision is relatively modest. This month, we revised our global GDP forecast higher and now forecast a contraction of 4.0%, a modest improvement from 4.3% last month. While most of the upward revision comes from an improved outlook in the United States, the outlook for some international economies has also improved. In particular, we see slightly stronger GDP prospects in Canada, Japan and New Zealand, while in Europe, we expect smaller economic declines in Sweden and Norway.

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