The world is seeing a V-shaped economic recovery: Bloomberg talks about why it is deceiving

Following the catastrophic collapse in economic activity, the charts show an encouragingly rapid recovery, but a short-term surge does little to indicate a more important medium-term outlook.

The world is seeing a V-shaped economic recovery: Bloomberg talks about why it is deceiving

This was reported by the Bloomberg agency.

As noted in the media, the indices of purchasing managers from Asia, Europe and the USA are among the indicators that have shown impressive growth, which is quite consistent with some reports about the V-shaped recovery.

The world is seeing a V-shaped economic recovery: Bloomberg talks about why it is deceiving

“But this short-term rebound says little about a more important medium-term. On top of that, the demand, employment and price indices in the indices provide grounds for caution, ” Bloomberg emphasizes.

Agency analysts are confident that the global economic recovery will drag on until the end of next year. According to the baseline scenario, the volume of production in 2020 will decrease by 4.7%. In a more pessimistic version of the development of events with a protracted pandemic, global GDP will decrease by 6.7%.

“Despite the fact that many countries have already gone through this, the uncertainty about new waves of infection holds back spending and investment. This means that in many parts of the world this year, the reduction will be worse than during the financial crisis, ” the media explained.

The situation is aggravated by the fact that extraordinary government spending for the first time will lead to an increase in global debt above 100%.

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