Overseas Headlines – October 28, 2020

United States:

Record GDP Surge to Mask Moderation in U.S. Economic Rebound

“The U.S. is about to report the fastest quarterly growth on record after businesses reopened following pandemic shutdowns and consumers proved resilient. But the headline number, like the record contraction preceding it, obscures key parts of the story. Data due Thursday are forecast to show U.S. gross domestic product surged an annualized 32% in the third quarter, almost double the previous high. That figure will reflect activity switching back on across the country after Covid-19 fears and government stay-at-home orders ground the economy to a halt in April.”



New Europe Lockdowns Raise Prospect of ECB Stimulus Surprise

“New coronavirus lockdowns by the euro zone’s biggest economies are boosting the chance of preemptive monetary stimulus by the European Central Bank this week. Germany is preparing to follow France, Italy and Spain with restrictions echoing those that triggered an unprecedented slump earlier this year. While most economists and investors still think the ECB will wait until December to expand its bond-buying program, the dramatic shift in risks has put them increasingly on guard for surprise action on Thursday.”



Singapore’s Central Bank Sees ‘Gradual and Uneven’ Recovery

“Singapore’s recovery from the coronavirus recession is likely to be “gradual and uneven,” with firms and households restraining spending and a recent bounce back in industrial output likely to taper off in coming months, the central bank said. While some economies worldwide, including Singapore’s, are showing signs of healing in the third quarter, “the near-term rebound is expected to fade to an incomplete recovery,” the Monetary Authority of Singapore said in its biannual Macroeconomic Review, released Wednesday. The city-state’s labor market is expected to “only expand gradually” next year.”




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