Have we started down the rocky road to recovery?

  • Date: 12-Aug-2020
  • Source: Arabian Business
  • Sector:Economy
  • Country:GCC
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Have we started down the rocky road to recovery?

Economic data over the last couple of months are suggesting that economies around the world are starting to recover from the impact of the new coronavirus, including the GCC economies. Global business conditions – as measured by the JP Morgan global composite Purchasing Managers' Index (PMI) – registered the first (albeit slight) improvement in six months in July.

Similarly, both the UAE and Saudi Arabia PMIs came in above the neutral 50-level last month, suggesting a stabilisation in the non-oil sectors of the region's two largest economies. This reflects a recovery in business activity as lockdown restrictions were progressively lifted, although output is probably still well below pre-coronavirus levels.  Google's mobility data paints a similar picture: the number of people going into their place of work or to retail and/or recreation