China’s 2060 carbon-neutral pledge is a game-changer in fighting climate change, aligning it with the EU, the UK and others.

Total frontier market debt hit a new record of over 120% of GDP in Q2 2020, up 6 percentage points from end-2019. The COVID-19 pandemic has placed a spotlight on rising global debt levels and sovereign debt vulnerabilities. 

The COVID-19 shock has us forecasting a global recession of -4.1 percent in 2020, substantially worse than the -0.4 percent contraction in the 2009 global financial crisis.

CEE-4 economies have outperformed growth in the Euro area in recent years. Growth has been driven largely by private consumption and capital formation. But the Euro area’s weakness could be a drag on the medium-term outlook. Structural changes in sectors such as car manufacturing represent a challenge.

This briefing note summarizes some of the key themes from the IIF Digital Interchange: The Global Dialogue on Digital Finance, a virtual event which brought together leading executives, specialists, and policymakers to discuss the economy of tomorrow. 

Attractive valuations fuel strong demand for corporate bonds in 2020; Corporates have issued a record $2.1 trillion worth of bonds this year (ex-financials), though issuance of high-yield EM corporate bonds remains below pre-pandemic levels.

On September 24, 2020, the European Commission published a package of digital finance strategy and legislative proposals.

The CEE-4 will likely experience relatively moderate GDP contractions. Fiscal and monetary stimulus measures support private consumption. Despite rising COVID-19 cases, major lockdowns are unlikely to occur. Medium-term growth prospects remain promising across the region.