Market Vault

The world averted the major crises of last month to continue marching ahead. Most developed countries reported economic recovery as seen from the improvement in high-frequency PMI, unemployment, wages, retail sales, and industrial activity data supported by progress of vaccination campaigns.

Key advanced economies have progressed well on curtailing the Delta wave with rapid inoculations. Further, plans of booster shots for adults and vaccines for youth could soon see these countries entering the “pandemic to endemic” phase of the virus

Even as Delta variant disrupted mobility and dented business activities mainly in the developing world, advanced economies continued with their re-openings (except Japan) aided by high levels of vaccinations.

July was a momentous month for all global citizens (or only for the wealthy, as some may argue) as space travel inched closer to becoming a commercial reality.

There is no doubt that global GDP will see a sharp recovery in 2021 from the troughs of pandemic ravaged 2020. But the strong resurgence is expected to continue well beyond pre-COVID levels into 2022.

It seems the forecasters of a V-shaped recovery have been proven right if one looks at the sustenance of several high-frequency macro-indicators.

When the world was in the grips of the pandemic last year, policymakers doled out massive stimulus to support the flailing economy, especially in the DMs.

Economic recovery is accelerating especially for DMs as seen from high frequency indicators like PMI, factory activity, property registrations, trade flows, payroll, and employment data.

This time last year the world was getting locked down to flatten the curve. Finally, we seem to be in a much better place with dropping daily infections and rising vaccinations.

2021 began on a sour note after a gloomy 2020 as the World witnessed anarchy – the likes seen in banana republics – in the oldest democracy – the USA. A surprise ‘Blue Wave’ outcome post Democrats winning the Georgia Senate run-offs riled Trump who provoked his followers to march onto The Capitol using his