(Bloomberg) — Three Group of Seven interest-rate decisions along with data accounting for 40% of global gross domestic product will provide a temperature check for the crisis-disfigured world economy this week during its most traumatic year for generations.
While the U.S. and euro regions may have achieved unprecedented growth rebounds in the third quarter, that will only serve to underscore the volatility and disruption inflicted by the coronavirus — as opposed to any meaningful repair to the damage caused.
Concurrently, the central banks of Canada, Japan and the euro area are all likely to signal renewed anxiety at the persistence of the disease and its lingering impact at a time of resurgent infections in Europe.
The cumulative snapshot of growth and policy on three continents will form a definitive backdrop on the state of the world economy before the U.S. election the following week.
In the aftermath of that vote on Nov. 3, decisions by the Federal Reserve and the Bank of England will then complete the latest sweep of G-7 monetary authorities determining borrowing costs and stimulus across the bloc.
What Bloomberg’s Economists Say…
“The week ahead is set to bring good news about the past, bad news about the future. In the U.S., third quarter GDP will show a record expansion, but with stimulus talks stalled and the virus case count rising, the outlook is darkening. In Europe, we expect ECB President Christine Lagarde to acknowledge intensifying risks to the recovery, and signal further support ahead.”
–Tom Orlik, chief economist
Click here for what