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NY Fed's Williams: U.S. economy still in 'deep hole' and rising infections pose risk – TheChronicleHerald.ca

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By Jonnelle Marte

(Reuters) – The U.S. economy is on a positive trajectory, but it is still in a “deep hole” and a rise in coronavirus infections could slow growth, New York Federal Reserve Bank President John Williams said Friday.

“The very large rise in COVID cases recently clearly puts a question market on the ability of the economy to weather this period,” Williams said in an interview with the Financial Times. “I would expect the growth in the fourth quarter, and maybe into early next year to slow somewhat.”

The ability to fully move past the virus will depend on the development of vaccines and other therapeutics, and progress announced recently on those fronts offered “positive signs” about the ability to move beyond Covid-19 in the next year or so, Williams said. Pfizer Inc announced earlier this week that its experimental COVID-19 vaccine is more than 90% effective, according to initial trial results.

Despite that good news, Williams said he is still more concerned about inflation remaining too low over the next several years as the economy continues to heal and millions of people try to get back to work.

“Things are looking better, but that’s in context of an economy that took an enormous hit,” Williams said. “Even today unemployment is still very high and we’re still in a deep hole.”

The fiscal aid rolled out by Congress earlier this year helped Americans stay afloat, and the savings built up with the help of stimulus checks and unemployment benefits are still supporting the economy today, he said.

“The reason consumers are still able to spend, the reason the economy is still going, is that we know that people are still having some of the unemployment checks and stimulus checks that they got,” Williams said. “That’s giving them the ability to pay the rent, put food on the table.”

(Reporting by Jonnelle Marte; Editing by Catherine Evans and Toby Chopra)

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Chile's economy closer to growth after months of contraction – TheChronicleHerald.ca

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SANTIAGO (Reuters) – Chile’s economic activity fell 1.2% in October from a year ago, the central bank said on Tuesday, as the Chilean economy inched closer to growth after months of contraction caused by the coronavirus pandemic.

The bank’s IMACEC economic activity index encompasses about 90% of the economy tallied in gross domestic product figures. The October figure was the economy’s best showing since February, when the economy grew 3.3%, bank statistics show.

But economic activity in Chile remained hobbled by the coronavirus outbreak, the bank said, even though cases of COVID-19 have fallen with the onset the southern hemisphere’s spring.

The bank said a drop in the production of goods and services had largely driven the contraction, but added the impact was softened by gains in commerce as quarantines were lifted across much of the nation.

Chile’s mining activity also grew by 1.6% in October, the bank said, a persistent bright spot during the pandemic.

Most of Chile’s sprawling copper mines maintained output even at the height of the country’s outbreak in May and June, a lifeline for an economy that depends on metals exports.

(Reporting by Dave Sherwood; Editing by Andrew Heavens)

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Statistics Canada to say today how country's economy fared in third quarter of 2020 – Humboldt Journal

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OTTAWA — The national statistics office will say this morning how much Canada’s domestic economy bounced back in the third quarter of the year.

The Canadian economy suffered its worst three-month stretch on record in the second quarter as the economy came to a near halt in April before starting to recover in May and June.

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Expressed at an annualized rate, real gross domestic product fell 38.7 per cent in the second quarter, the worst posting on record.

The rebound is expected to be equally sharp in the ensuing three-month stretch over July, August and September.

Financial data firm Refinitiv says the average economist estimate is for an annualized growth rate of 47.6 per cent for the quarter.

The firm also says the average economist estimate is for a 0.9 per cent increase in real GDP for September, which Statistics Canada will also unveil this morning.

This report by The Canadian Press was first published Dec. 1, 2020.

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Statistics Canada to say today how country's economy fared in third quarter of 2020 – CKPGToday.ca

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By Canadian Press

Dec 1, 2020 1:08 AM

OTTAWA — The national statistics office will say this morning how much Canada’s domestic economy bounced back in the third quarter of the year.

The Canadian economy suffered its worst three-month stretch on record in the second quarter as the economy came to a near halt in April before starting to recover in May and June.

Expressed at an annualized rate, real gross domestic product fell 38.7 per cent in the second quarter, the worst posting on record.

The rebound is expected to be equally sharp in the ensuing three-month stretch over July, August and September.

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