New infection rates have spiked across advanced economies, with the US and India recording the highest new cases across G-20 economies.
A reduction in new cases in emerging markets suggests the
pandemic peak might have passed, for now. India accounted for 54% of new infections in emerging markets.
But the second wave of infections across some developed economies is prompting localized restrictions.
New infections rise across most G-20 economies
Compared with previous weeks, in the most recent week, new cases have spiked across 15 G-20 countries.
The countries most hit are Italy and Germany. Nevertheless, deaths per confirmed cases have declined or remained steady.
The US accounted for 54% of new infections in advanced markets.
Brazil and the US have the highest overall level of confirmed cases, each accounting for around 16% of the total.
Moody’s says renewed health concerns drag on demand recovery.
High-frequency mobility data point to a scaling back in economic activity, caused by renewed localized restrictions amid policy support uncertainty.
COVID-19 is also weakening recovery in manufacturing activities.
Latest PMI and industrial production data suggest the pace of recovery in manufacturing across most of the G-20 is stalling.
The latest high-frequency data point to a more mixed picture of the trade recovery.
Fearing a total economic collapse, most G-20 economies are maintaining looser lockdowns overall.
Difficulties in battling the pandemic increase uncertainty and weigh on financial markets, slowing down improvements in financial conditions.
The leaders are dismissing health concerns, putting the economy ahead. They fear the expected boom after the COVID-19 pandemic may not be as good as foretold.
Hence, keeping economic activities open is an option that may assure a better economic rebound. But this has to be seen after COVId-19 is declared over!