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Sorry Coronavirus Pandemic, The Economy Has Had It With You

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A look at the economic data markets are loving right now.
The global economy hasn’t got time for the pain. Despite second waves in Australia, Japan and Spain — all countries that were deemed success stories and out of the woods — and some U. S. states like Rhode Island rolling back plans to open up, the global recovery narrative is alive and well on Wall Street. Take that panic sellers! Before anyone thinks the pandemic is over and the economy is going to return to pre-Covid levels, it bears keeping in mind that the economy is only recovering from being nearly completely shut down. Think of it as a dimmer switch; once turned to off, it’s now at the lowest brightness possible without flickering off. That’s kind of where most of the developed markets sit. Within emerging markets, only China is growing into positive GDP territory. Last week’s economics data showed the global economy is on a path to recovery. Although re-accelerating Covid-19 cases are fuelling fears of ‘second waves’ in the epicenter states, their economic consequences would likely be more muted as the appetite for lockdowns again is weak. Over the weekend we learned that President Trump will not wait for Congress to decide on some aspects of the coronavirus relief packages passed since the spring.

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