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The Economic Window Of The Upcoming Week Looks Promising For Europe, China, And America

The second wave of COVID-19 has hit the world and most of the countries are again implementing soft lockdowns to control the spread of the disease. The news of COVID-vaccine is also making rounds and is giving some hope that this horror will probably come to an end soon. However, this particular window has proved to be beneficial for China. Because of the resurgence of COVID-19 cases in Europe and America, the demand for medical supplies and some other goods increased. This prompted China to begin exporting this stuff to the areas where it is needed.

In November, China’s export orders started improving, and the trend seems to continue even now because China’s manufacturing industry has also begun to boom along with its export sector. Economists and experts are expecting a further increase in trade for China in the coming days.

European Central Bank Announcing Expansion Of Bond Purchasing Program

The European Union has decided to become united and lend support to each other to emerge from the coronavirus pandemic crisis. EU leaders have been urging the member states to come forward and help in creating a defense fund that will help the countries that have been afflicted by the pandemic the most to start recovering. Also, The EU leaders believe that government spending should increase rather than defense spending being cut out. For that also, the leaders of different EU member countries will hold virtual meetings to seek final approval on a €750 billion fund. All this money will be borrowed from the 27 member states to provide relief to the pandemic-hit countries.

The same day when this will be happening and the approval for this defense fund is received, which is expected to happen by 10th December, Thursday, the European Central Bank will announce an expansion in the bond purchasing program. This will help to cut down the borrowing costs and interest rates for the governments of the EU member countries. Even the loans will be cheaper and easier to get and with simpler conditions to pay off.  This added support will also allow the governments to spend more freely on the resurrection and recovery of different sectors in their countries.

UK’S GDP Contraction Improving

The UK is one of those countries which provide insights about its economy every month. In the second quarter of 2020, when other countries started facing an economic downfall, UK’s economy remained stable. However, at the beginning of the fourth quarter of 2020 with the resurgence of COVID-19 cases again, the already staggering and sustaining businesses could no longer hold up and that affected the Gross Domestic Product of the country which showed a noticeable decline.

However, it looks like the upcoming months are not going to be exceptionally hard and the economy of the UK will bounce back once again.

The US economy saw a major dip in GDP in the Q2 of 2020, and it has still not stabilized.

The Us Economy Saw A Major Dip In Gdp In The Q2 Of 2020, And It Has Still Not Stabilized.

The rate of unemployment has reached a record level in the US because of major companies laying off millions of their employees around the first wave of the pandemic. Even when the situation started getting better around the second quarter of 2020, the issue of unemployment could not be solved, and many US citizens remained jobless. And then the second wave of the pandemic came and worsened the situation. However, Congress failed to pass the fourth relief act that resulted in the elimination of around $600 supplement to cover unemployment insurances.

Anyway, all this situation is expected to have an impact on consumer goods and their prices which will increase too. The businesses are still struggling to meet the demands somehow, but it looks like they will need some time to recuperate and find a way to sustain themselves. The COVID-19 vaccine is about to be introduced soon, and experts believe that results will start showing and the disease will start getting under control by February 2021.

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