Overseas Headlines – October 23, 2020

United States:

Get Ready for an Eye-Popping U.S. GDP Number

“The Covid-19 pandemic caused the deepest U.S. recession since at least World War II. Gross domestic product shrank at an annual rate of 31.4% in the second quarter. Covid-19 is infecting more than 50,000 Americans a day, the most since early August. Somehow, though, the economy has roared back. On Oct. 29, according to economists surveyed by Bloomberg, the government is likely to report that GDP rose an annualized 30% in the third quarter—also a postwar record. These graphics portray a recovery that’s incomplete yet remarkable.”



Russia Keeps Rates on Hold But Says More Cuts Are Possible

“Russia’s central bank kept interest rates on hold for a second straight month but left open the possibility of future cuts as an economic recovery falters. The benchmark interest rate was left at 4.25%, the central bank said in a statement on Friday. The decision was forecast by 34 out of 40 economists in a Bloomberg survey, with the rest expecting a 25 basis-point reduction.”



What to Watch for in China’s 5-Year Plan as Economy Shifts to Self-Sufficiency

“China’s top policy makers meet next week to hammer out the country’s future economic blueprint, offering clues on how the leadership plans to pivot the world’s second-largest economy to be more self-sufficient. The four-day meeting of the Communist Party’s Central Committee will take place behind closed doors from Monday in Beijing. Known as the plenum, the discussion this year will focus on the framework for China’s 14th five-year plan that runs from 2021 through 2025, as well as the vision and targets for the next 15 years.”




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