Global economy – And suddenly 10% of GDP has vanished

Global economic activity passed its low point in Q2 2020, at a level about 10% below what would have occurred in the absence of the pandemic and lockdown, i.e. extrapolating the previous growth trend. A 10% contraction in global GDP is an unprecedented shock. A sharp rebound has materialised since then, which has erased around half of this loss, but this was the “easier” half to catch up, in response to the re-opening of production sites and retail venues. The extension of the re...