Correction time

Even though Covid-19 shows no signs of abating and the number of cases continues to rise across the world, no one is talking any more about lockdowns or shutting down the economy. Slamming the brakes on economic activity – from production and retail through to services – prompted a crash unprecedented in the history of GDP statistics. Comparisons have even been made to the devastation left in the wake of the Second World War. The eurozone economy shrank by 12 pct, with huge differences between individual countries. The German economy slumped 10 pct, but in Spain the figure was closer to 20 pct. The Japanese economy suffered a 28 pct contraction, while for Thailand, Malaysia and Singapore the shrinkage was between 10 pct and 20 pct. The US economy, however, plummeted by 32 pct – but it should be noted that this is according to annualised data, which indicates what the figure would be if Q2 trends were to continue. In most countries, a bounce-back has clearly been evide