The pandemic had a profound impact on global output in 2020. Many economies experienced sharp recessions, unemployment spiked, and incomes stagnated. In our view, property market outcomes in 2021 will be highly dependent on how the labour market evolves.
The MPC opted to keep interest rates unchanged at 3.5%. We maintain our view that there is room for further easing. Domestic mining production took a nosedive in November, dropping by an astounding 11.6% y/y. Consumer price inflation rose 3.1% in December from 3.2% in November.
While global output continues to recover from the pandemic-induced collapse, it will likely remain below pre-pandemic levels for quite some time. Manufacturing production declined by 3.5% y/y in November following decreases of 3.4% and 2% y/y in October and September respectively.
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