• About
  • Subscribe
  • Contact
Thursday, March 23, 2023
    Login
FutureCFO
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
FutureCFO
No Result
View All Result
Home Business Insights

Global credit conditions will likely improve in 2021

FutureCFO Editors by FutureCFO Editors
November 11, 2020
globe

Photo by Valentin Antonucci on Pexels

Global credit conditions will likely improve overall in 2021, aided by unprecedented fiscal and monetary policy support in the wake of the COVID-19 crisis, said Moody’s Investors Service recently. 

However, the initial, rapid economic rebound is giving way to a patchier, more tenuous recovery, as the pandemic proves hard to contain, the credit rating agency added. 

In a new report, Moody's Investors Service examines 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 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 minimise the public health crisis, below-normal external demand and a slow rebound in services sectors will dampen the pace of the recovery, she noted

Debt in the coronavirus downturn and recovery will likely rise faster and further compared to previous recession cycles, according to Moody’s. 

Unlike typical recession periods when the growth of private-sector debt slows, debt growth will accelerate for many sectors through 2021, the company pointed out. 

The mounting debt will come on top of the already historically high sovereign and corporate debt levels in many advanced and emerging markets, the company added.

Government debt-to-GDP ratios will be on average 20 percentage points higher in the large advanced economies and almost 15 percentage points higher in emerging markets by the end of 2021 from two years earlier, Moody’s predicted.

Political and geopolitical risk will create policy uncertainties, particularly with regard to the direction of US-China relations, a key issue for the next US presidential administration, and Brexit, the credit rating agency noted. 

Trade policy that results in a more splintered and protectionist global economy will have supply-chain implications for strategic industries such as technology and pharmaceuticals, the rating agency added.

Social issues will attract further prominence in 2021 in public policies, corporate strategies and investment decisions, according to Moody’s. 

The uneven effects of the coronavirus across society have heightened focus on racial, income and gender inequality, while longer-term factors such as ageing populations and the rising financial clout of millennials are increasingly shaping economic and social trends, the firm said.

Related:  Refinancing risk in China on the rise for finance firms
Tags: credit conditionsMoody's
FutureCFO Editors

FutureCFO Editors

No Result
View All Result

Recent Posts

  • HKTDC: Hong Kong Export Index rebounds sharply
  • China's reopening will boost earnings but risks remain
  • Payment behaviours likely to deteriorate in 2023 
  • Jason Ang Interview: Agile companies
  • CFOs: What’s your plan to mitigate risks of bank failures?

Live Poll

Categories

  • Artificial Intelligence
  • Audit and Compliance
  • Automation
  • Big Data
  • Blockchain
  • Business Applications
  • Business Insights
  • Case Studies
  • Cloud, Platforms and Ecosystems
  • Competencies and Capabilities
  • Digital Transformation
  • eBooks and eBriefs
  • Finance Accounting and Reporting
  • Future Technology
  • General
  • Infographics
  • Leadership and Roles
  • Mergers and Acquisitions
  • Operational Accounting and Control
  • Operations
  • Polls and Surveys
  • Resources
  • Risk and Regulation
  • Strategies and Tactics
  • Tax Management and Optimization
  • Technology
  • Treasury and Cash Management
  • Videos/Tutorials
  • Webcasts/Podcasts
  • White Papers

Strategic Insights for Finance Executives

FutureCFO.net is about empowering the CFO and the Finance Team to take on the leadership position in the digitalization of the enterprise. It's more than just a portal for the exchange of industry best practices, it is about creating and growing a community of finance professionals able to share learned experiences, providing a platform for the current and next generation of finance leaders and professionals.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO
  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In