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Can we expect a fast recovery of the economy?

Can we expect a fast recovery of the economy?

In one of its recent analyzes, Danske Bank says that markets are shifting between surges of optimism and scepticism. Better-than-expected economic data may contribute to the former. On the other hand, new outbreaks of COVID-19 are emerging in Europe, and in the United States, a large number of countries have seen a surge in the next wave. However, the governments of many developed and developing countries are again trying to respond to the downturn with further fiscal stimulus, to which central banks are adding monetary policy.

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Source: Morgan Stanley

According to Morgan Stanley analysis, the global economy bottomed out in May and is now recovering. This year it should fall by almost 4%, but next year it should grow by more than 6%. Curiosity is, that developed markets has to decrease more than emerging markets, which has to decrease more than 5%.

Overall, the story by Morgan Stanley does not sound pessimistic and, for example, the stock market, judging by its valuations, is now telling downright optimistic stories.