Covid-19 Executive Briefing

Understanding the economic impact of the Covid-19 pandemic and the implications for the mining sector

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Latest update: 11 May 

Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.

Major market indices are improving as, despite oil dipping below zero, it has rebounded quickly.


With economists cutting their forecasts in response to the pandemic, the 2020 consensus forecast for GDP growth is currently -2.3%.


According to the US Bureau of Labour Statistics, the unemployment rate rose to 14.7%,  the highest since the great
depression of the 1930s

Impact of Covid-19 on asset prices


Latest update: 11 May 

GlobalData analyst view:

"Lockdowns and closure of non-essential businesses and operations is particularly impacting platinum, copper, silver and gold, with only coal mines largely exempt."

The latest forecast for global construction output growth is a decline of 2.2%, versus initial expectations of 3.1% for 2020.

Lower automotive manufacturing will also impact demand for steel, aluminium, platinum, and palladium. Platinum demand is forecast to decline by 7% in 2020.

Mining suspensions have now been ended in Argentina, South Africa, India, Zimbabwe, Peru, and Bolivia. Governments in both Peru and Bolivia have allowed mines to return to operation from 2 May, provided they implement strict protocols to avoid the spread of Covid-19.

impact on capital expenditure

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