MACRO ECONOMIC NEWS

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Wishing A Fabulous Friday Ahead.

 

Best Regards

Arbind

 

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Macro-Economic News 29 Jan 2021

 

Living with higher debt is a norm everywhere, although few warn of increasing spreads. Globally, pandemic spending has equaled the government debt to global GDP. Central banks are also supporting governments continue to spend to deal with the economic fallout of the pandemic.

 

IMF also suggests living with a higher level of debt with a change of public financing rules. World Bank also opines to win the Covid war first and then thinking to pay for it later. The surge in German inflation poses a communication challenge for ECB whilst the Italy crisis raises concerns about EU recovery spending.

 

Economists expect growth in 2021 although U.S. Economy had the worst performance since 1946, shrinking in 2020 despite fourth-quarter growth of 4.0% in the last quarter. Japan's December factory output extends declines as recovery stalls with a steady jobless rate steady at 2.9%. New Zealand inflation is accelerating to its central bank target.

 

Indian govt may go for higher external financing while gross market borrowing may be less than ₹12-lakh crore. PM tells CEOs at World Economic Forum to invest in India, a vibrant democracy with a business-friendly climate and a big market. India's rank slips to 86th in corruption perception index 2020, and Gold demand plunged to an 11-year low in 2020. Gita Gopinath opines India may not hit pre-Covid growth levels before 2025 while the 15th Finance Commission may recommend farm export incentives for states in the Budget session. Covidonomic and Farmonomic are expected to dominate this Budget session.

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