Economy

Global economy seeing sharper V recovery, raising case for inflation: Morgan Stanley

Updated : September 08, 2020 02:03 PM IST

The US 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.

The global economy is likely to recover to pre-pandemic levels by early next quarter, about three months earlier than previously expected, economists at Morgan Stanley said. ”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 US 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.

Global economy seeing sharper V recovery, raising case for inflation: Morgan Stanley

You May Also Like

MEA to provide 8.1 lakh COVAXIN doses for free to these 7 countries

Expect to deliver first Tejas Mark-1A aircraft in 36 months from signing contract: HAL

Rupee drops by 21 paise to 1-week low on dollar demand

Trending on CNBC-TV18

recommended for you