• Economic impact of the Covid-19 pandemic is now clearly seen with a massive hit in output, inflation and unemployment indicators of major economies
  
• Major central banks have maintained low levels of interest rates in the past month, and, in some cases, have been expanding the scope of their monetary stimulus
  
• Commodity prices continue to fall, led by the dramatic fall in crude oil prices owing to the slowdown in global demand
  

With the interconnected global economy torn asunder by lockdowns and social distancing, the world is only now beginning to comprehend the economic impact of the Covid-19 pandemic. First-quarter (Q1) gross domestic product (GDP) has declined across major advanced economies, inflation has slowed, and unemployment has risen to record highs. This stifling of the virtuous cycle of economic growth seems to validate the recession forecasts of global agencies.

In a desperate bid to support their respective economies, central banks and governments are continuing to provide economic stimulus. However, the prevailing high degree of uncertainty around the spread of the virus indicates economic activity will likely remain subdued. While the infection curves in a few regions seem to have reached their peak, containment measures are expected to stay on for longer. We can therefore expect global macros to follow a similar downward trajectory in the coming few months.