The health crisis paralyzed all sectors, including the economy at all levels. At the global level, the continents of Europe, America and Africa are looking for adapted solutions to restart the economy. But following the advent of the COVID vaccine, the tip of the tunnel appears gradually. A reopening of the global economy is announced and will be accompanied by inflation.
The vaccine, repair remedy
The authorities of the countries affected by the H1N1 virus, engage considerable public spending on the distribution of the virus, which made it possible to observe the preliminary signs of a probable reopening of the global economy. This revival of the economy is very slow in the second quarter of the year 2021, but it will certainly know an acceleration during the semester 2. With the reopening of the economy, inflation will probably increase.
It is a situation that will be characterized by a revival of economic growth, in expectations of emerging markets due to the restart of the Chinese and Indian economy. This economic environment will certainly contribute to the global economy, resulting in the disappearance of flexible monetary conditions, which could stiffe the economic curve in the United States and pressure growth actions.
What to expect for investments?
The succession of the global economy will be due to the rebound in the European economy and the US economy, accompanied by a renewed economic activity in China and India. The increase in the Chinese and Indian economy is due to the actions of the Asia-Pacific region, with the impact of global social advancement. In these doubtful economic conditions, the actions appear partial coverage against inflation.
In the event of a risk of high loss, the global economy will always benefit from public spending in Europe and the United States, which are classes of defensive assets. These actions are subject to historical discounts, aging assets, decarburization and data growth, which strengthen their growth potential. The steep curve of the economy following inflation should benefit from the European debt, as safety.