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Corona-Crisis-Barometer: Second wave hits

Dr. Thomas Gitzel, Chief Economist
Reading time: 2 Min
The economic activity is yet again lower due to the second wave of infections.

VP Bank Corona crisis barometer

Last update: 27 October  2020

Economic activity measured by the VP Bank corona crisis barometer is declining week on week. Above all the somewhat lower demand for electricity is making itself felt.

This could reflect the increasing number of new infections. It is noticeable that the demand for electricity in the Midwest of the US is declining in a week-on-week comparison. This is precisely where the current infection hotspots are located.

All in all, the number of new infections in the US on a daily basis has now passed the peak recorded last July. This indicates a similar development to the one in Europe.

During the winter months, Covid-19 will likely slow the economy in Europe but also in the USA. The service sector in particular will suffer. The hotel as well as the restaurant and the event industry are bearing a heavy burden.

On the barometer: The measures taken to control the spread of the coronavirus have been drastic. The global economy is severely impaired, resulting in an unprecedented drop in gross
domestic product (GDP). The question is now, how fast the economy will rebound if the restrictions are lifted.

The VP Bank Corona Crisis Barometer tracks how well the economy is recovering.

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