The released Official China NBS/CFLP PMI and the Caixin/IHS Markit PMI for August showed both that the Chinese economy was undergoing a robust growth recovery in August. However, the Official PMI shows that the economic recovery is uneven and is driven first and foremost by large manufacturing enterprises and by the construction sector., which benefited the most from the fiscal and monetary stimulus measures. Export orders continued their recovery initiated in June but the major driver of growth was domestic demand. Employment remained muted as companies still face uncertainties related to the COVI19 pandemic and its impact on economies across the world. Expectations remain anchored at a high level, although they edged lower compared to July and June.
Willl the Covid-19 reshape the global economy? What are the most important hotspots and the blindspots revealed by this crisis? We tackle this issue in this article. Beyond the handling of the health crisis and the exceptional support measures designed to ensure that hundreds of millions or even billions of people around the world do not lose their livelihoods overnight, the most worrying concern are the medium- and long-term consequences of the crisis for the global economy.