Growth to accelerate from Q2 as services reopen

Even with recent vaccine approvals raising hopes of ending the pandemic later this year, tightening activity restrictions, delayed vaccine rollouts, and resurfacing supply-chain disruptions mean global economic growth will be even weaker in Q1 2021 than the fairly lacklustre end to 2020.

What you will learn:

  • Recovery will rotate away from manufacturing, finance, and tech, and towards hard-hit consumer services such as travel and hospitality.
  • Household savings built up during the pandemic should also support the recovery in consumer services. But because these savings are held predominantly by higher-income families, the lingering jobs shortfall will hamper vulnerable households.
  • Supply-chain disruptions, which have damaged manufacturers’ ability to meet the rebound in goods demand, will ease from H2 2021 as industrial suppliers realign production schedules and the tightness in freight capacity diminishes.

Topics: Manufacturing, Coronavirus, Industry, Market Highlights, Coronavirus vaccine, Pandemic

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