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- ECONOMIC IMPACT -
Latest update: 18 November
While current consensus forecast for global GDP remains negative, many countries are seeing their own GDP level off after weeks of decline.
Polls show that employment prospects have consistently improved since July, with most employees favouring working remotely full-time.
The Japanese economy grew by 5% (QoQ) in Q3 2020 with improvement in domestic demand and exports.
The Malaysian economy contracted at a slower pace of 2.7% (YoY) in Q3 2020, as compared to 17.1% contraction in the previous quarter
Impact of Covid-19 on equity indices
- SECTOR IMPACT: MINING -
Latest update: 2 December
demand side impact
The current forecast for global construction output growth is a decline of 3.1%, versus initial expectations of growth of 3.1% for 2020. Excluding China, the decline would be 5.3%.
The slowdown in construction is forecast to result in copper and iron ore demand to fall by 3% in 2020. Whilst lower automotive manufacturing will also impact demand for steel, aluminium, platinum, and palladium. Platinum demand is forecast to decline by 7% in 2020, with light vehicle sales estimated to have fallen by 31.3% in Q2.
Mining companies are undertaking a range of measures to minimise the potential for infections and the impact of Covid-19 on mining operations. However, despite efforts to minimise the spread of the virus, cases are still being identified.
For example, Orocobre temporarily suspended operations at its Olaroz lithium mine in Argentina in late October, following 35 employees testing positive for Covid-19.
Meanwhile, as at 23 November, the Minerals Council of South Africa reported a total of 18,885 cases, of which 218 remained active, with 197 deaths across the mining sector. Over 62,670 tests had been taken at mines across South Africa as at 23 November, equal to 13.3% of workers.
Key commodity developments