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Charting the Global Economy: 2020 Seen as Worst Since WW II

Charting the Global Economy: 2020 Seen as Worst Since WW II

(Bloomberg) -- The world economy will probably suffer its worst downturn since World War II because of the Covid-19 pandemic and efforts to contain it. Fresh data show the lockdown’s toll on the U.K. economy and how U.S. businesses scrambled for liquidity as operations came to a standstill.

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

U.S.

Charting the Global Economy: 2020 Seen as Worst Since WW II

Business debt soared in the first quarter by the most in records back to 1952. Firms boosted debt by nearly $755 billion, or at an 18.8% annualized rate, in the first quarter to a total outstanding $16.8 trillion that surpassed the level of household borrowing, according to the Federal Reserve.

Charting the Global Economy: 2020 Seen as Worst Since WW II

Consumer sentiment climbed in early June by the most since 2016 as more states began to reopen their economies and employers restored jobs. Even with the improvement, confidence remains well below pre-pandemic levels.

Europe

Charting the Global Economy: 2020 Seen as Worst Since WW II

The U.K. economy shrank a record 20.4% in April as businesses and workers reeled under the lockdown designed to contain the coronavirus pandemic. The contraction means the nation has effectively seen almost 18 years of growth wiped out in two months

Charting the Global Economy: 2020 Seen as Worst Since WW II


Europe’s economy risks losing out on a massive dose of stimulus from its consumers. Household deposits in the euro area’s four largest economies jumped more than 100 billion euros ($114 billion) in March and April, three times as much as the average pace of growth over the past decade.

Asia

Charting the Global Economy: 2020 Seen as Worst Since WW II

China’s factory deflation deepened in May and consumer price gains slowed, signaling that the recovery from the first quarter coronavirus slump remains uncertain.

Emerging Markets

Charting the Global Economy: 2020 Seen as Worst Since WW II

Loan payments by African governments were manageable -- barely -- when growth was strong, but fallout from the outbreak threatens to unravel years of progress.

World

Charting the Global Economy: 2020 Seen as Worst Since WW II

The coronavirus pandemic is splintering the world economy, and its impact on businesses and the most vulnerable will require extraordinary government action, the OECD warned.

Charting the Global Economy: 2020 Seen as Worst Since WW II

The global economy will contract the most since World War II this year and emerging nations’ output will shrink for the first time in at least six decades due to the pandemic, reducing incomes and sending millions of people into poverty, the World Bank said.

Charting the Global Economy: 2020 Seen as Worst Since WW II

Job appointments are starting to show signs of recovery as months of Covid-19 lockdowns begin to lift, according to LinkedIn data.

©2020 Bloomberg L.P.