A frustrating economic malady is stagflation, in which typical remedies to solve one aspect (inflation) aggravate the second facet (stagnation). As the world’s economies struggle with the COVID effect, stagflation is rearing its head after being in remission for nearly half a century. How policymakers respond now will determine its future course.
After encouraging economic performance during the first half of 2021, Indonesia’s enviable advance was thwarted by a resurgence in Delta-variant COVID cases during the third quarter, prompting forecasters to lower their GDP growth projections. Will Southeast Asia’s leading economy pull through this downturn and regain its momentum?
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.
US bond yields have remained stubbornly low, flying in the face of key indicators such as rising inflation and employment. The US isn’t the only country with low bond yields, and many credit lingering pandemic uncertainties. Failing a robust, sustained recovery in confidence and economic performance, they may continue to languish.
Repurpose Digital Transformation: It’s Not Just about the Technology, but the People We Serve and Lead
The pandemic has ignited banks’ digital transformations and stressed People as our key priority. Leading from the heart, closing the digital-skills gap, translating corporate purpose into action, undertaking a transformation that is strategically anchored and risk-balanced and maximizing customer experience, will propel banks into a better shared future.
Kuwait’s Warba Bank was established a decade ago to help bolster the economy. By leading in digitization, it has provided a blueprint for its peers. During his interview, Shaheen H. Al-Ghanem described the bank’s varied offering of digitally delivered products and services, which have resulted in high ratings from its appreciative customers.
The recent riots in South Africa sparked by the imprisonment of the country’s former president, Jacob Zuma, left a path of property damage and lost lives. The root causes go much deeper than the ex-president’s arrest, and fixing the country’s underlying economic problems will be a complicated but essential process for the government.
Physical distance is needed to combat COVID-19 but has also bolstered the move to omnichannel payments. Customers enjoy paying in-store, but many have discovered the convenience of other methods and appreciate an integrated experience offering varied channels. Sellers that adopt omnichannel capacity will find customer satisfaction follows.
Financial-technology and financial-services firms are transitioning from competitors to partners, exploiting the advantages and resources that each offers—with fintechs bringing technological proficiency and agility and banks providing large and loyal customer bases. Four recent partnerships confirm just how rewarding these unions can be.
There are many elements of life that have been profoundly affected by the coronavirus pandemic. Some we will learn to live with, others will revert to how they were, and some we will embrace for the better. What’s certain is that we must adapt our stance in a world that is constantly changing.