{"id":251,"date":"2020-07-22T14:49:21","date_gmt":"2020-07-22T13:49:21","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=251"},"modified":"2020-08-18T14:50:20","modified_gmt":"2020-08-18T13:50:20","slug":"global-economy-on-the-ropes","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2020\/07\/22\/global-economy-on-the-ropes\/","title":{"rendered":"Global economy \u2013 on the ropes"},"content":{"rendered":"\n\t<div class=\"hd-block hd-block-rich-text hd-block-count-1 template--template1\" data-count=\"1\" id=\"hd_rich_text-block_5f3bdc715baa7\">\n\t\t\n\t\t\t\t\t<div class=\"hd-block__inner hd-block-rich-text__inner\">\n\t\t\t\t<div class=\"hd-richtext__colwrap\">\n\n\t\t<div class=\"hd-richtext__colwrap__inner\">\n\t\t\t\n\t\t\n\t\t\t<div class=\"hd-richtext__col hd-richtext__col-1\">\n\n\t\t\t\t<p><strong>The response to the pandemic, involving governments imposing a range of lockdown measures, will inevitably have an enormous impact on economic activity around the globe.<\/strong><\/p>\n<p>On home shores, early data for the first quarter provides an indication of the economic damage, showing GDP fell by 2% in the UK, with the economy shrinking by 5.8% in March alone. An even larger decline was registered in the 19-country Eurozone, with output across the bloc dropping 3.8% in Q1. Italy and France plummeted into recession, with quarterly contractions of 5.8% and 4.7% respectively. In addition, the German economy also tipped into recession with GDP down 2.2% in Q1.<\/p>\n<h2>US AND CHINA ECONOMIES CONTRACT AND HOSTILITIES INTENSIFY<\/h2>\n<p>Preliminary estimates on the US economy suggest the record streak of expansion experienced since 2014 had ended, with a contraction of 4.8% in the first quarter.<\/p>\n<p>Meanwhile, the world&#8217;s second-largest economy, China, shrank at an annualised rate of 6.8% during Q1. The Chinese authorities have abandoned setting a growth target, acknowledging the challenges facing its economy amid heightened international disquiet due to the fallout from the pandemic.<\/p>\n<h2>WHAT DOES THE FUTURE HOLD?<\/h2>\n<p>Ongoing uncertainty surrounding the virus and the likelihood of developing a successful vaccine, make it challenging to predict the future path of the global economy. A recent assessment from the International Monetary Fund (IMF), suggests we are facing the steepest economic downturn since the Great Depression. While the IMF has emphasised its predictions are marked by &#8216;a higher-than-usual degree of uncertainty&#8217;, it is forecasting a rebound in 2021, with the global economy expected to grow at a rate of 5.4% as activity normalises. They have stressed though, that if a second global wave did occur, that could effectively keep the world in recession for a second consecutive year.<\/p>\n\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div><!-- \/ hd-richtext__colwrap__inner -->\n\t\t\n\t<\/div><!-- \/\/ hd-richtext__colwrap -->\n\t\t\t<\/div>\n\t\t\n\t<\/div>\n\n\t","protected":false},"excerpt":{"rendered":"","protected":false},"author":12,"featured_media":252,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,33],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/251"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=251"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/251\/revisions"}],"predecessor-version":[{"id":254,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/251\/revisions\/254"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/252"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=251"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}