Author: Christopher Cutajar, credit analyst at Calamatta Cuschieri

Sacrifices borne by governments, businesses, and the public at large, to mitigate the spread of the coronavirus pandemic, certainly leaving a broad and harsh impact on the economic landscape, have in Q2 come to fruition. Coronavirus-induced restrictions on movement and a vaccination drive, seemingly well-underway in the developed market world, proved crucial, curbing the spread of the deadly virus. The gradual easing of pandemic-inflicted movement restrictions combined with monetary and sizeable fiscal support allowed economies to rebound from worrying lows. A scenario everyone has longed for.  The pick-up in economic activity has however, been partly overshadowed by a sharp pickup…

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Before a coronavirus second wave, worsened by a new double mutation variant thought to be behind the sudden surge in cases that overwhelmed hospitals, India’s economy was seemingly on track to recovery.  In line with the said recovery, the International Monetary Fund (IMF) forecasted double-digit economic growth, set to make India the fastest-growing large economy in the world. The estimate, although back then seemed plausible, now, seems ambitious given the number of coronavirus infections and drop in mobility. In June, leading economic figures, such as PMI readings – an indicator of economic health for manufacturing and service sectors, revolved into…

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The economic scenario within the Eurozone, for quite some time dampened as coronavirus-inflicted movement restrictions negatively impacted services, is seemingly improving as June’s “flash” or preliminary data – a useful gauge of economic health in the two key sectors, maintained its more recent pace.  The long awaited pick-up in services across Europe continued to transpire, while factory activity maintained its upward trajectory.  The IHS Markit Eurozone Composite PMI rose to 59.2 in June 2021, the fastest pace in 15 years, and slightly above market expectations of 58.8, a preliminary estimate showed. June’s flash reading pointed to a third successive month…

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Following a turbulent year 2020, conditioned by the outbreak of the coronavirus pandemic triggering a widespread global shutdown of economic activity, negatively impacting demand and disrupting supply chains, 2021, at least to date, proved benevolent.  Energy, industrial metals, and even precious metals — those mainly reliant on industrial applications, continued to rebound, maintaining the upward trajectory witnessed at the end of last year.   Oil Crude oil – strongly depressed in the first half of 2020, consequent to a fall in demand due to the health crisis and breaking up of the OPEC+ agreement, registered substantial gains in the second…

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