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Global Economics Monthly Review

February 2020

  • The rapid spread of the Wuhan coronavirus (COVID-19) around the world, is the primary, immediate peril that the global economy is facing.
  • In the baseline scenario, there will be sizeable impairment in the short-term, yet in the recovery stage, perhaps in the second half of 2020 and maybe only during 2021, rapid growth is expected in order to close the gaps.
     
  • Monetary policy in most of the world is leaning towards being expansionary.  Against this backdrop, and in light of the concerns regarding the damage to global growth, yields are expected to remain moderate.

 

 

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