Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

EU Carbon Border Adjustments and developing country exports: Saving the worst for the last

The introduction of the EU carbon border adjustment mechanism (CBAM) will come with a high cost for developing economies, particularly African trade partners and the Arab states of the Persian Gulf, which will face the highest ‘carbon tariffs’. 

 

Emerging Europe: The balance of risks is tilted to the downside

Economic activity in the Emerging Europe region rebounded markedly in Q3 2020, but new lockdowns will send the region into a double-dip recession in Q4. 

 

Zero interest rates: Redistribution through the backdoor

With the Covid-19 crisis, zero interest rates will become entrenched in Europe for the time being. Besides the (negative) long-term effects – rising inequality, distorted financial markets and misallocation of resources – there are also direct income effects.