The global economy has been facing unprecedented challenges in recent times, with the Covid-19 pandemic wreaking havoc on businesses large and small. As countries scrambled to contain the spread of the virus, governments implemented strict lockdown measures that led to a sharp decline in economic activity. As a result, there has been growing concern about whether we are in a technical recession.

A technical recession is typically defined as two consecutive quarters of negative economic growth. However, it is worth noting that the traditional metrics for determining a recession may not accurately capture the current economic landscape. With the pandemic causing such severe disruptions to the global economy, many experts believe that the traditional rules may not apply in this case.

In a recent interview, JPMorgan Global Market Strategist Marko Kolanovic weighed in on the topic of whether we are in a technical recession. Kolanovic pointed out that while the global economy did experience a significant contraction in the second quarter of 2020, there has been a strong rebound in the months since then. He noted that many countries are seeing a V-shaped recovery, with economic activity bouncing back quickly as lockdown measures are eased.

Kolanovic also highlighted the unprecedented levels of government stimulus that have been injected into the economy to support businesses and individuals during the pandemic. These stimulus measures have provided a much-needed lifeline to struggling industries and helped to shore up consumer spending. As a result, many economies have been able to weather the storm and avoid a prolonged downturn.

While the global economy is still facing significant challenges, Kolanovic expressed cautious optimism about the outlook for the future. He pointed to the development of effective vaccines as a potential turning point in the fight against the pandemic. As countries begin to roll out vaccination programs, there is hope that economic activity will continue to pick up steam.

In conclusion, while the global economy has undoubtedly been hit hard by the Covid-19 pandemic, it is not clear whether we are currently in a technical recession. The situation remains fluid, and much will depend on how effectively countries are able to contain the virus and support their economies. With continued government stimulus and the rollout of vaccines, there is reason to believe that the worst may be behind us. However, it will be crucial for policymakers to remain vigilant and adaptable in the face of ongoing challenges.

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing