The global economy is recovering

The global economy is recovering

The International Monetary Fund sees first certain signs of the global recovery from the Coronavirus-caused recession based on the predicted growth of the Chinese economy, which is now growing really fast, as the Chinese government has implemented rigid measures on containing the virus.

The IMF before projected that the world’s economy would shrink 4.4% but now these estimations have slightly improved on positive global news and signals. Looking at countries, the levels of decrease of the economy in annual numbers for 2020 are different, from 4.3% in the US and 8.3% in the Eurozone for over 20% in some developing countries. Whilst the Chinese economy is already about to show +1.9% growth this year, and +5.2% the next year, adding somewhere about 3.5% every next year.

 

The told above, however, does not mean markets would fully recover in the nearest years, as they will be left short for about 2023-2025. The lowest-paid workers and the youngest generations were hit the most and they will be still experiencing the long trace of the 2020-crisis for years to come. National debt levels are not shrinking and taxes are swelling in many countries. The exact figures for economic recovery largely remain uncertain and may dramatically change after the vaccine from the coronavirus is found.