The International Monetary Fund’s (IMF) most recently updated global growth forecast is gloomier than the last.
The IMF forecast global growth of -4.9% for 2020, down from the -3.0% forecast previously released in April.
Having topped the European league tables with the highest number of infections and deaths due to the coronavirus pandemic, the U.K. looks set to top the recession league table, according to a recent report by the Organization for Economic Cooperation and Development (OECD).
This morning in metals news, the Federal Reserve on Wednesday opted to maintain the federal fund interest rate at 0-0.25%, the Producer Price Index for final demand rose 0.4% in May and Chinese rebar futures fell Thursday.
Can China ever record economic growth greater than 6%?
We don’t know, but if I were a betting man I’d say not.
After contracting some 6.8% in the first quarter of this year, estimates vary with respect to what China’s GDP growth will be for 2020 in total. CRU expects between 2-3%, according to a Financial Times article, but analysts polled by the South China Morning Post are quoting between 1.5-2.5%, with some major banks, like UBS, expecting growth at the bottom of that range.
Economists and parts of the media are openly debating whether the massive financial support that is being injected into the economy and the resulting unprecedented levels of debt governments are taking on will fuel inflation down the line.
France, heartbeat of the European social ideal, is facing an existential crisis caused by the impact of the lockdown of its economy.
Nowhere is that more evident than in the Grand Est region of northeastern France, termed the heart of the country’s auto industry, according to the Financial Times.
This morning in metals news, the Energy Information Administration (EIA) released fuel inventory build projections for Q2, Mexico is preparing to ease its coronavirus restrictions and the U.S. recently announced a move targeting China’s Huawei’s.
Lockdown restrictions have initiated the worst contraction in global trade since the Great Depression of the 1930s.
Even during the 2008 financial crisis, the volume of exports in Europe only contracted by 11%.
This crisis could prove significantly worse, The Telegraph reports.
The stock market has had its best month in decades and many are clearly looking forward to May with more optimism than they could April, but a series of articles in The Economist suggest we are far from the prospect of a return to normal.