Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

Coronavirus vaccines and broad government financial relief efforts are seen providing a stronger tailwind for the global economy this year.

In Europe, most of the major economies expanded at the end of 2020, while growth in the U.S. continued to benefit from sustained business investment and firm home construction, the latest data show.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:

World

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

The International Monetary Fund raised its forecast for global growth this year, betting the rollout of coronavirus vaccines and more fiscal stimulus will offset the immediate challenge posed by the resurgent pandemic

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

As borrowing surged during the pandemic, central banks played their part by keeping borrowing costs down. As a result, Covid-era debt is considerably less expensive to service than existing debt, according to estimates by Bloomberg Economics.

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

The world economy won’t be able to fully repair last year’s damage to employment in 2021 after the Covid-19 pandemic wiped out the equivalent of 255 million jobs, according to the International Labour Organization.

U.S.

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

The world’s largest economy downshifted at the end of 2020 after record third-quarter growth, as the coronavirus continued to batter the job market and limit Americans’ ability to spend.

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

Business investment was one of the economy’s bright spots in the fourth quarter and monthly figures show it will remain so early this year. Non-defense capital goods orders excluding aircraft, a proxy of business investment rose for an eighth straight month in December.

Europe

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

Three of the euro area’s four-largest economies rounded off the pandemic year suggesting the region can avoid a deeper recession, while still facing headwinds from extended coronavirus lockdowns, figures released Friday indicate.

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

Italy topped the major euro-area nations in fiscal support as a share of the economy in the Covid crisis, according to figures on emergency spending through Dec. 1 from national central banks provided by the Bank of France.

Asia

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

While export orders have flooded in for China’s small- and medium-size factories as the nation’s economy recovers from the effects of the virus, they’re not happy. Manufacturers and trading companies are reeling from a jump in the yuan, rocketing shipping costs and labor shortages that have slashed their already wafer-thin margins.

Emerging Markets

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

The economic recovery in Philippines hinges on children leaving lockdown.

Charting Global Economy: Vaccines, Stimulus to Fuel 2021 Growth

Mozambique’s central bank became the first globally to raise interest rates this year in a surprise move, saying the increasing number of coronavirus infections and recent natural disasters worsened the inflation outlook.

©2021 Bloomberg L.P.

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