In the event of 2021, the Financial Times spoke with a group of financial analysts and market experts to introduce the most important risks to the global economy in 2021. 2020 was one of the most difficult years for the world economy, and the economic growth of many countries reached its lowest level in history. However, the recovery of world economic growth is expected to intensify next year.
The main risk to the global economy, which is likely to continue in the early months of next year, is Coronavirus. It has killed more than 1.7 million people worldwide so far, costing central banks and governments about $ 13 trillion.
"Traders have high hopes for the effectiveness of the coronavirus vaccine and hope to gradually see the end of the coronavirus nightmare in the world and the resumption of normal life," said Vincent Mortier, vice president of Amundi Investment Fund.
In many countries worldwide, inflation is now either at a negative level or just above zero percent, severely restricting the central banks' freedom of action in monetary and fiscal policies. Inflation for next year will be one of the most important factors determining the direction of global markets.
"In the medium term, we will not have much reason for inflation to reach the target range in Europe and the United States, and this will have a very negative impact on the ability of central banks to revive growth," said Howard Marks, director of the Oaktree Capital.
The dollar ended the year with a strange, record low of 6 percent against major global currencies. Many analysts believe that the dollar will also perform poorly next year and could affect the course of financial transactions.