Global economy to be in recovery mode within six months

The global economy is likely to be headed for recovery from a coronavirus-triggered downturn within six months – but only if mass testing is rolled out now and governments guarantee to support demand.

The prediction from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and services organizations, comes as global stocks held steady Tuesday, after rallying on tentative indicators the Chinese economy – the world's second-largest – is stabilizing following coronavirus lockdowns being lifted.

However, they retreated Wednesday as the pandemic worsens in the US – the world’s largest economy.

“The economic fallout of Covid-19 is as severe as it is unpredictable. No-one knows for sure the full of extent of the impact of the public health emergency on the world economy – but a significant downturn is, unfortunately, almost inevitable. However, the signs from countries where lockdown restrictions are now being eased suggest that the economic downturn could be relatively short-lived if certain factors come into play sooner rather than later,” Green said.

(WBJ)