Allianz Research

Volle Kraft voraus:
Global Wealth Report 2025

Unleashing excess FX reserves: To boost growth in Latin America

In 2021, Latin American countries could be holding "excess" FX reserves of around 8.8% of GDP, with an opportunity cost to economic activity as high as 0.7% of GDP. Redirecting excess reserves to long-term productive investments would help Latin America bridge its infrastructure gap, boost productivity and thus enhance the business environment, creating more opportunities for companies.

Biden´s infrastructure plan: Defying gravity?

Biden’s USD2.3trn ‘Build Back Better’ infrastructure plan represents the second stage of a three-phase stimulus rocket and will be a long-term driver of growth in the US.

Race to the post Covid-19 recovery: Seven obstacles to overcome

The global recovery is on the right track albeit conditional on key differentiating elements across countries. Global GDP is expected to rebound by +5.1% in 2021, with one fourth of the recovery being driven by the US, while China should contribute less to growth by progressively adopting a less accommodative economic policy. In 2022, world GDP growth should reach +4.0%. Europe should recover its Covid-19 losses only at this horizon against H2 2021 for the US. The race to recovery will hinge on seven key obstacles.