COVID-19 Archives - Page 2 of 9

How Rising Interest Rates Could Affect Emerging Markets

By Aminu MusaPosted on April 5, 2021Posted in Africa & World EconomyTagged Advanced Economies, COVID-19, developing economies, Emerging Markets, Fiscal Stimulus, Interest Rate, Vaccine developmentNo Comments

Emerging and developing economies are viewing rising interest rates with trepidation. Most of them are facing a slower economic recovery than advanced economies because of longer waits for vaccines and limited space for their own fiscal stimulus. Now, capital inflows to emerging markets have shown signs of drying up. The fear is of a repeat of the “taper tantrum” episode of 2013, when indications of an earlier-than-expected tapering of US bond purchases caused a rush of capital outflows from emerging markets.

Slow-Healing Scars: The Pandemic’s Legacy

By Adebisi SamuelPosted on March 31, 2021Posted in Africa & World EconomyTagged Business, COVID-19, Lockdown, Pandemic, RecessionNo Comments

Recessions wreak havoc and the damage is often long-lived. Businesses shut down, investment spending is cut, and people out of work can lose skills and motivation as the months stretch on. But the recession brought on by the COVID-19 pandemic is no ordinary recession. Compared to previous global crises, the contraction was sudden and deep—using quarterly data, global output declined about three times as much as in the global financial crisis, in half the time.

Redefining Private Wealth Management Amidst Future Uncertainty

By David ShaibuPosted on February 12, 2021Posted in Business & FinanceTagged COVID-19, Financial Assets, Uncertainty, wealth managementNo Comments

The pandemic has clearly redefined how stakeholders (high net worth individuals and private wealth managers) within the value chain of private wealth management see value creation in both the medium and long term. One noticeable event resulting from the global health crisis was the surge in system liquidity, mostly in advanced economies, following the fiscal and monetary support to contain the spread of the virus.

A Race Between Vaccines and the Virus as Recoveries Diverge

By Joshua OlorunsaiyePosted on January 28, 2021Posted in Africa & World Economy, AgenciesTagged COVAX, COVID-19, Pre-COVID, RECOVERIES, Uncertainty, Vaccines, VirusNo Comments

In just three months since we released our last forecast in October, recorded COVID-19 deaths have doubled to over 2 million, as new waves have lifted infections past previous peaks in many countries. In these same three months, multiple vaccines have seen unexpectedly strong success and some countries have started ambitious vaccination drives. Much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens. There remains tremendous uncertainty and prospects vary greatly across countries.

Financial Perils in Check for Now, Eyes Turn to Risk of Market Correction

By Aminu MusaPosted on January 27, 2021Posted in Africa & World EconomyTagged Assets, Capital Market, COVID-19, Financial, Financial stability, IMF, market, VaccinesNo Comments

Prices for stocks, corporate bonds, and other risk assets have risen higher on the news of vaccine rollouts. Financial markets have shrugged off rising COVID-19 cases, betting that continued policy support will offset any bad economic news in the short term and provide a bridge to the future. As the apparent disconnect between exuberant financial markets and the still-lagging economic recovery persists, it raises the specter of a possible market correction should investors reassess the economic outlook or the extent and duration of policy backstop.

What 1919 Teaches Us About Pent-Up Demand

By Aminu MusaPosted on January 12, 2021Posted in AgenciesTagged 1919, 2021, COVID-19, demand, Pandemic, warNo Comments

1918 should have been a great year for baseball. A young left-handed pitcher named Babe Ruth began the year by pitching an opening-day victory for the Boston Red Sox. Shortly after, Ruth lobbied the team’s manager to let him play other positions so he could spend more time at the plate. The strategy paid off, and Ruth began his run as a home-run-hitting superstar, helping lead the Red Sox to the World Series.

How the Rich Get Richer

By Adebisi SamuelPosted on December 1, 2020Posted in AgenciesTagged COVID-19, Inequality, investment, Pandemic, Rich, taxNo Comments

A paper co-authored this year by economists from the IMF and other institutions confirms that wealthier people are more likely to earn higher returns on their investments. It also shows that the children of wealthy people, while likely to inherit that wealth, aren’t necessarily going to make the same high returns on investments.

Time is Ripe for Innovation in the World of Sovereign Debt Restructuring

By Joshua OlorunsaiyePosted on November 29, 2020Posted in AgenciesTagged COVID-19, Debt, Debt instruments, Debt Restructuring, Sovereign debt restructuringNo Comments

When corporations have too much debt and need to restructure it, creditors often end up exchanging bonds or loans for stocks. They trade the guaranteed payout of a fixed-income investment for an equity position whose return depends on the company’s future results. In other words, investors accept to share risk. Could a similar mechanism be applied when a sovereign nation has to restructure its debt, tying payouts to its future economic performance?

Continued Strong Policy Action to Combat Uncertainty

By Joshua OlorunsaiyePosted on November 28, 2020Posted in AgenciesTagged COVID-19, Debt Service, employment, Global GDP contraction, Unemployment, Vaccine developmentNo Comments

As G20 leaders meet virtually this week, the global economy faces a critical juncture. Countries have started to climb back from the depths of the COVID-19 crisis. But the resurgence in infections in many economies shows just how difficult and uncertain this ascent will be.

Bridging the Digital Divide to Scale Up the COVID-19 Recovery

By Joshua OlorunsaiyePosted on November 6, 2020Posted in AgenciesTagged Brazil, COVID-19, Digital financial services, Digital solutions, Ghana, Kenya, Rwanda, TanzaniaNo Comments

Digitalization has in the past few years enabled developing countries, in particular, to leapfrog on financial inclusion. Countries like Kenya, Ghana, Rwanda and Tanzania have made great advances in connecting their citizens to financial systems by leveraging on mobile phone technology.

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