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Berenberg Bank has predicted that Europe’s economy could shrink again in the current quarter if tighter measure are imposed to combat the pandemic.
In a new report, they warn that the situation has worsened considerably since late August. Economic stagnation in October-December already looks likely – with near-term risks “ever more tilted to the downside” in the coming weeks.
As the days are getting shorter and colder, the Eurozone and the UK are reporting record numbers of confirmed SARS-CoV-2 infections and a much slower but still serious rise in medical complications and deaths.
In response to renewed restrictions and rising nervousness, forward looking surveys and some concurrent indicators of economic activity have started to come down, ending the rebound that had commenced in May…..
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The surge in Covid-19 cases around the world, notably Europe, has also sapped confidence, increasing fears of a “double-dip” scenario….
Exploding Covid-19 infections across the country could yet dent the American fourth-quarter comeback. Looked at in conjunction with Europe’s situation, there are severe threats to the consumption side of the global recovery.
For all the talk about China, it is essential to remember when America gets Covid-19, the rest of the world gets sent to the isolation facility.
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It’s risk-off because Covid cases are rising and with curfews across Europe meaning economic dangers now lurk in the dark.
So, with the governments worldwide under pressure to tighten social mobility restrictions after a pick-up in new daily covid-19 cases, an effective vaccine candidate and even a partial stimulus bill and then topped up post-election cannot come quickly enough.