The results of the 3rd Phase trial of the Moderna vaccine and the Pfizer vaccine made the United States (US) stock index set a record. Both vaccines are considered as ammunition to end the COVID-19 pandemic.
Wall Street turned green because investors believed so much in vaccines. Even a vaccine is expected as a starting point for an economic reversal. Both companies believe vaccine distribution can begin in late 2020 or early 2021.
However, notes made by the head of the economic group at Capital Economics, Neil Shearing, stated that vaccines have not been able to save the world economy from the Corona pandemic. Because, Europe is still making restrictions.
In US, COVID-19 cases have surpassed 11 million at the end of last week. At least 45 states have reported more cases of COVID-19 infection.
“The good news about vaccines is influenced by the fact that they will not come soon enough to prevent a difficult winter for many countries,” Neil said.
European restrictions or lockdowns will also not be as strict as before.
“Obviously the lockdown this time around is much less stringent than before,” said Ben May at Oxford Economics.
Even unsaved world economic movements are in line with lower taxes. Oxford Economics predicts global economic growth of around 0.7% in the fourth quarter of 2020. This figure is much lower than the projection for the third quarter of 2020 which is around 7%.
“The pace of growth in the fourth quarter has dropped back very sharply,” said Ben May.