Comments
World GDP will return to the level it was before Covid-19 by mid-2021 after a stronger-than-expected economic bounce in recent months, Deutsche Bank said on Monday, but bloated debt levels and a shift in policy could heighten the risk of a financial crisis.
“Global economic recovery from the depths of the Covid-19 plunge this past winter and spring has proceeded significantly faster than we envisioned,” Peter Hooper, Deutsche global head of economic research wrote in a note to clients.
“As Q3 draws toward a close, we estimate that the level of global GDP is about half way back to its pre-virus level, and we now see that journey being completed by the middle of next year, a couple quarters sooner than in our previous forecast.”
Deutsche upped its forecast for global GDP to -3.9 per cent after predicting in May a year-on-year contraction of -5.9 per cent for 2020. For 2021, Deutsche raised its growth forecast to 5.6 per cent from 5.3 per cent.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.