Entries by Drew Millard

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December 2020

COVID-19 has wreaked havoc on the world economy, which is set to contract the most since WWII this year as governments shut down large segments of their economies to slow the spread of the virus. There are some signs of recovery as the latest data from the CPB Netherlands Bureau for September showed that real […]

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November 2020

Global growth momentum continued into October, as industrial activity and trade readings from the U.S., China, and Japan pointed upward. Good news regarding various vaccine trials increased confidence that the pandemic will be less of a drag by Q2 2021. In the near term however, downward revisions to growth reflect recent restrictions on activity across […]

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October 2020

Today, COVID-19 is no longer the unknown but the new normal and is spreading again in the U.S. and Europe. The combination of caution and restrictions on travel and hospitality continue to impede the recovery. The reopening of economies that began in May will contribute to GDP recovery, but a second wave of virus infections have […]

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Q4 2020 Outlook

Section 1: Q4 2020 Outlook   Teetering Between Recovery and Chaos COVID-19 has depressed economic activity around the world. Monetary and fiscal responses from governments and central banks in both developed and emerging economies since March are without precedent, far surpassing actions taken during the global financial crisis. We are currently living in a world […]

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September 2020

The global pandemic-induced GDP collapse has led to higher debt service burdens and lower ability to repay, resulting in an increase in non-performing loans and credit risk. We are now in a twilight zone of partial lockdowns. Fearful of rebellion, and of snuffing out signs of economic recovery, governments are opting for a hodge-podge of […]

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August 2020

The initial pick-up in economic activity that we saw in June began to fade in July as households and firms remained in cautious mode, particularly with new virus cases rising in some countries. Monetary policy is less effective as global interest rates are at their lowest levels, leaving central banks with little ammunition.  Central banks […]

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July 2020

The “golden era” of globalization is behind us. A drive towards de-globalization, that began for many nations following the Global Financial Crisis, has intensified as the current pandemic has exposed some of the vulnerabilities from global supply chains. The risk is that the current recession becomes a global depression. Depressions entail a prolonged period of […]

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Q3 2020 Outlook

Section 1: Q3 2020 Outlook   A Crisis Like No Other: Recovery in A Changed World The global economy is in its worst downturn since the 1930s. For the first time, all regions are projected to experience negative growth in 2020. There are, however, substantial differences across individual economies, reflecting the evolution of the pandemic […]

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June 2020

The role of the financial industry as an allocator and distributor of capital to the economy is critical to the evolution of the current pandemic. The current health crisis has morphed into an economic crisis, which has morphed into a financial crisis. While advances in testing and contact tracing will help, risk of a second […]

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May 2020

The economic impact of the extraordinary measures taken by governments all around the world to flatten the COVID-19 pandemic curve is highly uncertain. The outcome will depend on the evolution of the virus and the intensity and efficacy of containment efforts. Economic data continue to show severe economic disruptions associated with COVID-19 and only limited […]