US set for new growth dynamic after Covid-19

The pandemic will change international economic relations

This article is an extract from Union Investment’s white paper, Post-coronavirus investment world: a new script for portfolios?

The Covid-19 pandemic will lead to a new growth dynamic. Why? Because the supply side is set to be boosted by the acceleration of technological progress while the demand side will benefit from an increase in state economic activity.

However, it is not just the growth dynamic that will change but also international economic relations. The key questions are around what impact this set of circumstances will have on growth and interest rates and what will happen with inflation given these conditions.

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