Covid-19 Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the mining sector
- ECONOMIC IMPACT -
Latest update: 11 August
Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.
Concern over the spread of Covid-19 remains volatile but business optimism remains high.
Fitch Ratings reports that the combined GDP of the US, China, and the Eurozone
contracted by 4.1% (QoQ) in Q2 2020.
The Swedish economy contracted by 8.6% (QoQ) in Q2 2020, according to
Impact of Covid-19 on employment
- SECTOR IMPACT: Mining -
Latest update: 12 August
GlobalData analyst view:
"Commodity prices began to stabilise in May, supported by rising demand from China and continued supply constraints, whilst sentiment is improving as lockdowns end."
The latest forecast for global construction output growth is a decline of 3.2%, versus initial expectations of 3.1% for 2020.
A slowdown in construction has impacted copper and steel demand, with copper demand forecast to be down by 3% in 2020 and iron ore demand down by 2.8%
Suspensions of mining have ended in most countries with mining in Mexico permitted to resume on 1 June.
impact on capital expenditure