The first quarter of 2021 was marked by the recovery of the world economy. Macroeconomic data on all fronts were significantly favorable in Q1. However, long-term rising inflation above 2% is a source of concern for investors. What are the expectations for Q2? Find out more in our report.
Q1 2021 Highlights:
- 2020 was marked by a pandemic crisis and attempts by the world’s economies to recover and reopen. In the fourth quarter of last year, we could see relatively strong growth in the manufacturing sector, on the other hand, services, which account for more than two thirds of GDP in developed countries, remained undetected.
- During the Q1 2020-Q1 2021 period, the FED purchased $1.9 trillion of government bonds as part of the quantitative easing programme and as of the end of March 2021 the FED held up to $4.9 trillion of U.S. government bonds.
- The effects of government stimulus on the real economy have been and remain under discussion. While there is broad consensus on the partial suppression of the negative effects of the pandemic on citizens’ lives through government expenditure, the definition element of the distance on fiscal stimulus is the possible high level of inflation triggered by expenditure.
