Economy expected to bounce back to Pre-COVID levels in terms of Global GDP

A ‘stronger-than-expected economic bounce’ has changed the envision of the growth by giving a boost to the world GDP, states the Deutsche Bank Economic Research Department’s Global Head this Monday.

The shockwaves that the COVID19 has sent across the world economy have left every nation shaken. With the fall in the output level due to the worldwide lockdown that forced every citizen to stay back at home and every business to change their plan of action, the tremors of the COVID are felt at the Global level.

The Q2 of the year 2020 has witnessed a slow recovery rate of the Global GDP rate. With schemes like ‘Eat Out to Help Out’ to boost the economy are let out by the government of countries like Britain. Still, the economy around the globe is in a fragile state, and the fear of the second shockwave of COVID could result in a robust hit to the businesses.

According to Peter Hooper, Deutsche Global Head of economic research has communicated the positive signs of recovery. Moving near the Q3, the level of the global GDP has proceeded comparatively faster that predicted. The level of the Global GDP is halfway back to the pre-COVID level, and the journey to reach the fullest is expected to get by the middle of the next year.

As per the previous forecast of Deutsche Bank, the Global GDP was expected to shrink to 3.9% this year after the prediction of 5.9% for May 2020. The recent forecast for 2021 raised the growth forecast to 5.6% as against 5.3%.

There are still uncertainties and potential trouble ahead added by Mr. Hooper, nevertheless, the forecast is optimistic. Even after the positive outlook, there is a possibility of heightened risk based on the rising debt levels and any shifts in the financial policy. This is a tremendously positive expectation which is sure to help decision-makers make better decisions.