The scale and speed of responses and support were unprecedented

The financial rating agency Fitch Ratings said on Monday that the resulting “pandemic scars” of Covid-19 will be smaller than initially expected, noting that the medium-term post-pandemic recovery contrasts with the “sluggish post-economic crisis growth “.

In a bulletin issued on Monday, which presents new estimates for developed markets, the financial rating agency also says that the pandemic will reduce the potential growth of the Gross Domestic Product (GDP) on the supply side of the economy in the medium term. .

In the document, Fitch Ratings points out that investment is more resilient than expected and that in the long run unemployment was lower than expected, after unprecedented political support.

Fitch Ratings adds that the medium-term economic recovery of developed markets will be “much faster” than that seen in the ‘hangover’ of the global financial crisis of 2008 and 2009.

Likewise, the financial rating agency underlined that the scale and speed of responses and support were unprecedented and allowed for the “softening of private sector sheets” and supporting demand.

The increase in demand also led businesses to increase their manufacturing capacity and there was also an acceleration in the use of information technologies.

Given these factors, Fitch Ratings expects that, among developed markets, the pandemic will remove just 0.1 percentage points per year from the growth they registered in the pre-pandemic period.

Covid-19 has caused at least 5,144,573 deaths worldwide, among more than 256.54 million coronavirus infections recorded since the start of the pandemic, according to the latest report by the Agence France-Presse.

The disease is caused by the SARS-CoV-2 coronavirus, detected in late 2019 in Wuhan, a city in central China, and currently with variants identified in several countries.
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