Morgan Stanley: Global economy to recover faster than expected
The coronavirus has delivered a hard blow to the world economy. Many economic sectors across the globe have suffered big losses due to the corona crisis. For this reason, many analysts have made rather grim forecasts for the future of the global economy. However, the epidemic is waning and the global economy starts showing signs of recovery. Some analysts even point out that the recovery is happening at a quicker than expected pace. This is why analysts at Morgan Stanley, who have recently voiced gloomy forecasts, have revised their outlook for the world economy.
Assessing the prospects of the global economy, Morgan Stanley economists are more than optimistic. According to the new forecasts, the global economic recovery has already begun. In the fourth quarter of 2020, the global GDP is projected to return to its pre-crisis levels. "We have greater confidence in our call for a V-shaped recovery, given recent upside surprises in growth data and policy action," economists pointed out. Naturally, there is a threat of a second wave of the coronavirus. Nevertheless, analysts at Morgan Stanley are confident that its consequences will not be so devastating if scientists develop a vaccine. Some market players note that Morgan Stanley puts the problem of the vaccine in a way as if it has already been developed and the only problem is getting wide access to it. Currently, all the potential vaccines are being tested.
However, the IMF does not share such rosy views. The fund argues that the world economy is recovering more slowly than expected. Besides, the IMF warns that it is too early to make forecasts as uncertainty over a second wave of the virus is still weighing on the global economy. If it comes true, the economy will suffer even more due to the reintroduction of lockdown measures. As a result, the global economy will not be able to escape a more prolonged and deeper crisis.