Global Economy will remain fragile in 2021
Moody’s says govt debt-to-GDP ratios will be higher in large advanced economies
New York: Global credit conditions are likely to improve overall in 2021, aided by unprecedented fiscal and monetary policy support in the wake of the Covid-19 crisis, Moody's Investors Service said on Monday. However, the initial, rapid economic rebound is giving way to a patchier, weaker recovery, as the pandemic proves hard to contain.
In a new report, Moody's examined six key themes that will shape the credit environment in the year ahead: uneven recovery, policy challenges, rising debt levels, digital transformation, environmental impact and social trends.
"The vast policy support from the governments since the start of the crisis will propel a stronger economic recovery in advanced markets than in many emerging markets, and business and operating conditions will continue to be steadier for sectors that have more easily adapted to the pandemic-related disruption," said Moody's Associate Managing Director Elena Duggar.
"However, even in countries that have managed to minimize the public health crisis, below-normal external demand and a slow rebound in services sectors will dampen the pace of the recovery."