Global public debt will hit an all-time high in 2020 and this won’t be without consequences for debt sustainability, particularly for the most fragile economies.
The first wave of Covid-19 lockdowns caused a stronger-than-expected profitability shock for most European non-financial corporates in H1 2020, with French and Spanish firms hit particularly hard despite generous policy support.
Restrictions on non-essential stores in France ahead of a critical holiday season are casting a shadow over nearly EUR18bn of retail sales normally made at year-end. In a particularly adverse yet realistic scenario where the sanitary situation demands store closures to last until the end of December the financial impact is not to be underestimated.
The “Allianz Financial and Risk Literacy Survey”, a representative survey with 1000 respondents in each country was conducted in Germany, Austria, Switzerland, France, Italy, Spain and the US. We asked about experiences with income, consumption, savings and investment, financial literacy and risk during the COVID-19 pandemic.
Encompassing the ten ASEAN countries, Australia, China, Japan, New Zealand and South Korea, the Regional Comprehensive Economic Partnership (RCEP) will cover around 30% of world GDP and population, making it the largest trade deal by these measures.
