Recovery after crisis to be moderate: report
21:12
American investment company KKR wrote a report about the economic recovery after the crisis caused by the Covid-19 pandemic. They called it "Keep calm and Carry on".
The authors of the report admitted that the pace and scale of central bank reactions around the world is impressive and may prove crucial in ensuring a relatively "soft landing" of the global economy in post-crisis reality.
At the same time, they indicated that the Covid-19 pandemic is hitting the global economic system during its high vulnerability: The crisis occurred at a time of elevated debt levels around the world, which weakens the system's resilience.
Unlike the crisis in 2008, which was a derivative of the situation on the financial market, the current crisis is a collapse in the real economy. And this type of collapse "straight" goes out longer.
What problems can we expect? KKR said that economic populism will be one of them.
"Currently, people are looking for confirmation of their theories and guesses, not reliable information, which will cause information chaos and create space for populists playing on emotions. This, in the face of growing nationalism and weakening globalization processes, may cause an increase in social tensions," KKR experts said.
