Struggling economies can learn from Cyprus how to deal with the Covid-19 crisis August 27, 2020 International businesses and investors are right now wondering whether governments are really up to the task of handling the fallout from the global shutdown. With real GDP in the EU predicted to shrink by 9.3 per cent in 2020, the message from the European Commission is that the speed at which countries will recover depends [...]
Service sector employment fell sharply in last quarter as UK entered recession August 27, 2020 Employment fell sharply across the UK services sector in the three months up to August as the coronavirus pandemic sent the country into the deepest recession on record. The service sector dominates the business landscape in this country, making up nearly 80 per cent of the economy. According to a survey conducted by the CBI, [...]
Germany extends job-support scheme – contrasting with UK’s approach August 26, 2020 Germany has extended its job-support programme that subsidises workers’ wages at coronavirus-hit firms until the end of 2021 in a bid to support its economy. The move contrasts sharply with the UK’s approach. British chancellor Rishi Sunak has pledged to end the country’s “furlough” scheme in October. Germany’s scheme, known as “short-time work” or “Kurzarbeit”, [...]
Jackson Hole symposium: All eyes on Fed chair Powell August 26, 2020 After an extremely busy few months, the world’s central bankers may have fancied a relaxing trip to the Teton mountain range in the US state of Wyoming. Yet it’s not to be. The coronavirus pandemic has forced this year’s Jackson Hole economic policy symposium to be held online on 27 and 28 August. Since 1982, [...]
Sweden shows us whether lockdown was worth the economic cost August 26, 2020 Did Sweden get it right in its response to Covid? There is increasing interest in this question. Contrary to widespread belief, the Swedes did introduce a few legally enforceable restrictions on behaviour. For example, public gatherings of more than 50 people were forbidden in March. Private ones were exempt from the ban. But, overall, compared [...]
Four in five recruitment firms expect financial hit this year from Covid-19 August 25, 2020 Four in five recruitment firms said they expect a drop in full-year income in 2020-2021 as a result of the Covid pandemic. The majority of recruitment firms forecast a 15-30 per cent drop in income compared to the previous year, the survey by HSBC’s professional services team found. HSBC UK’s head of professional services Chloe [...]
German economy suffers record quarterly contraction August 25, 2020 The German economy shrank by a record 9.7 per cent in the second quarter of the year due to the impact of the coronavirus pandemic on consumer spending, investments and exports. The contraction, announced today by the German statistics office, is the sharpest drop since the country began recording quarterly GDP calculations in the 1970s. [...]
The inflation divide: what should investors be doing? August 25, 2020 Currently, inflation is more of an annoyance than the economic tyrant of old. Given the unprecedented stimulus that the global economy has received since the coronavirus crisis hit, the debate is whether these “whatever it takes” financial packages will stoke a sustained period of rising prices. Inflation or deflation? The inflation debate is polarising opinion [...]
UK retail sector enjoys ‘significant’ jump in footfall as economy recovers August 24, 2020 The number of visits to UK retail destinations jumped last week as the economy’s recovery picked up steam, new data has shown, with London a particular bright spot. Footfall was up 4.1 per cent in the 16 to 22 August period compared to the previous week, data firm Springboard said today. The rise was “a [...]
Coronavirus crisis: How far will the UK economy fall in 2020? August 24, 2020 HSBC last week became the latest big institution to downgrade its forecasts for the UK economy and disagree strongly with the Bank of England’s rosy expectations. It said the historic 20.4 per cent slump in GDP in the second quarter “was worse than we had expected”. The lender said it was therefore now “more pessimistic” [...]