Political changes will be a drag on economies
SINGAPORE (June 12): Across the globe, lockdowns are easing and economic activity is gradually resuming. But with the pandemic likely to be with us for a long time; the world is not going back to its old ways. Typically, deep and widespread crises such as this pandemic tend to accelerate existing trends while also setting in motion new ones.
What shape the “new normal” will take is still uncertain, but the patterns emerging in a few important areas point to challenging times ahead: Existing political frictions have worsened to a point where there could be economic damage; there is a greater likelihood that the world economy will be less vibrant; the chances of damaging financial turbulence have increased; and countries as well as companies will have to adapt, sometimes painfully, to structural changes that the crisis has accelerated.
