• Second-quarter (Q2) gross domestic product (GDP) growth in major advanced economies showed deep contraction
  
• Following easing of restrictions in June, inflation and trade inched upwards in the United States (US) and China
  
• The global energy index continued to rise owing to increase in crude oil prices; metal prices are also rising, indicating renewed global demand
  

The global economy is taking hesitant steps forward with containment measures easing across most countries. There is a halting revival in demand, seen in the rising trade, inflation and employment indicators. However, uncertainty persists on account of the resurgence in Covid-19 cases in a few regions. No one quite knows whether the one step forward will be followed by two steps backward.

Moreover, the economic impact of the pandemic has been much more severe than expected, and recovery is expected to be more gradual, as per the International Monetary Fund. Q2 GDP estimates for major advanced economies have contracted deeply, the largest on record in a few cases. Major central banks have kept their interest rates unchanged and maintained the pace of their bond-buying and lending programs. However, most forecast that while economies may have bottomed out in Q2 the outlook is mired in uncertainty.