Allianz Global Wealth Report 2026

ECB: From "whatever it takes" to "bring it on"

Last night, following an emergency meeting of its governing council, the ECB announced a new temporary asset purchase program worth EUR750bn (around 6% of Eurozone GDP) until the end of the year - or longer if needed - in response to the COVID-19 outbreak

COVID-19: A timid “whatever it takes” from policy makers across Europe

This week, policy makers stepped up, as containment measures could cost between 0.7pp to -3.0pp of GDP growth depending on the country and the severity of the lockdowns. Next to steps aimed at keeping a lid on contagion and boosting the resilience of national health systems, fiscal and monetary policy measures, from Italy to the UK and Germany, to the ECB, have been –or will– be announced in an effort to cushion the sharp economic contraction that is in the cards for H1 2020.

 

COVID-19: After a lost quarter, 75% of China is back

Chinese foreign trade growth in the first two months of 2020 was the lowest since 2016. The drop remains nonetheless small compared to the global financial crisis in 2009, when exports and imports slowed as much as -26.5% and -43.1% y/y in a month. In January and February 2020, Chinese exports and imports declined respectively by -17.2% and -4.0% y/y. The drop in exports was larger than expected and implies the weakest start of the year since 2016. The coming months could show further deterioration in China’s foreign trade, as containment measures across the world act as a major trade barrier.