Vanguard economists believe the global economy is most likely already in recession and expect negative growth for 2020. The depth of the downturn will depend on how long the most restrictive COVID-19 containment measures remain in place.
Paul Jakubowski, Vanguard's head of global fixed income indexing, and Sara Devereux, Vanguard's global head of rates, discuss the recent bond market liquidity crunch, what the future may hold, and potential implications for investors.
COVID-19 is already having a tragic impact on Canadians and people across the world, and governments are rightfully prioritizing extreme measures to protect public health. The economic impact will be intrinsically linked with measures to overcome the health impact.