COVID-19 has reinforced the dividing line between the developed and developing worlds. Recovery in developed countries, with high vaccination rates and generous fiscal stimuli, is impressive. But the situation is the opposite in developing nations. The future is as unpredictable as the virus, but experts are forecasting what may happen.
Warfare has existed throughout human history, but it hasn’t always involved swords and spears. If humans are doomed to fight each other, is economic warfare more “humane” to solve disagreements than military confrontations? Possibly, but both lines of offense can have devastating consequences for victims and should be carefully monitored.
Emerging markets appeal to investors because of their unrealized potential. As a group, they have performed well, even during crises. The pandemic has influenced this investment opportunity by rendering some EM countries more promising than others. Careful examination and cautious selection of the likely best performers are recommended.
Sixty years ago, China committed to leapfrogging its economy in a comprehensive reform initiative, the Great Leap Forward. Today, the country is bearing the fruits of those measures as it vies with the US for its title of the world’s most relevant country. In the midst of its Second Great Leap Forward, will China grab the coveted prize?
The COVID-19 pandemic has afflicted not only human beings but human economies. It has also revealed serious flaws, especially in supply chains, that predated the pandemic but have been exacerbated by it—especially the global dependence on China as the source of goods and materials. Fortunately, possibilities to adapt for the better exist, and it is likely that one long-term benefit of the virus will be prompting advantageous supply-chain changes.
For the world’s economy, 2021 hasn’t yet brought a break from 2020; COVID-19 remains dominant. Although all banking systems are vulnerable to upheaval, the situations for those in emerging markets are more tenuous for several reasons. S&P Global Ratings examined the three major risks facing a sample of 15 EM countries, including likely deterioration in asset quality, geopolitical and domestic policy uncertainty and vulnerability to abrupt changes in investor sentiment.
Regarded as one of the world’s safest countries from the coronavirus, Taiwan is also one of the few that registered positive economic growth in 2020 with bright prospects for 2021. Its clever handling of the pandemic isn’t the only reason for its resounding success. The country is also benefitting from US-China trade tensions. But one thing is certain, Taiwan is indeed Formosa, a “beautiful island”, within a bleak world environment.
The robots are taking our jobs—or are they? This has been one of the most hotly discussed subjects of recent years as the startling developmental leaps being made in technologies such as artificial intelligence (AI) and robotics continue to make automation more sentient, efficient and productive.
Natural resources offer investors endless and rewarding opportunities. Today, one of the most interesting segments is rare earths, a group of 17 minerals used in trending products from electric cars to smartphones. China has the corner on this market, despite US efforts to muscle in. Even though rare-earth prices have taken a hit during the pandemic, investors would still do well to consider adding these versatile minerals to their portfolios.
Throughout the past four decades, despite their differences, the United States and China have found a way to get along through a symbiotic trade relationship that maximizes their competitive advantages. Recent US concerns about national security and China’s dominance in manufacturing have strained relations, but now more than ever, with the pandemic threatening to unravel years of economic progress, the world’s two largest economies need to pull together.