Global economy seeing sharper V recovery: Morgan Stanley

PanARMENIAN.Net - The global economy is likely to recover to pre-pandemic levels by early next quarter, about three months earlier than previously expected, Reuters has cited economists at Morgan Stanley as saying.

“The evidence indicates that the virus/economy equation has shifted decisively from the early days of the outbreak,” they said in a note to clients, saying that the recovery has continued to gather momentum as countries get better at managing the virus.

The U.S. economy could reach its pre-Covid-19 levels by the second quarter of next year, while the entire developed markets could reach that level by the third quarter of next year, they said.

Coupled with unprecedented levels of fiscal and monetary support and possible disruptions to trade, the prospective recovery is likely to be accompanied by stronger inflation, they said.

Estimates by Warwick McKibbin of the Brookings Institution and Australia National University showed earlier that the coronavirus pandemic could cost the world economy some $35 trillion through 2025.