The global economic outlook has deteriorated again amid accelerating incidence rate of Covid-19 and risk of repeated lockdowns, showed Reuters polls of more than 500 respondents. More than 17 million people worldwide have been infected with the coronavirus and over 600,000 have died. This forced governments to impose tight restrictions to contain the spread of the virus.

Most economists, long-term investors and even Fed Chairman Jerome Powell say openly that the outlook is highly dependent on the course of the pandemic.
The Fed reiterated its pledge to use the full range of its instruments to support the US economy and keep interest rates near zero at least two years. Dollar tumbled this week to the lowest level for two years.

With the virus cases rising in the US and other countries, including Australia, India, Spain and Brazil, economists have lowered their economic outlook for this year again, according to polls from July 3-29 that point to a record global economic contraction in 2020.

“We expect that the economic reality of the virus will soon begin to take its toll on businesses around the world,” said Jan Lambregts, head of financial markets research at Rabobank. “We need a vaccine or a major breakthrough in drugs to finally open up our economies and restore business and consumer confidence, but there is no magic wand at this time”, he added.

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