Ahead of the Curve, Q2 2021

Sustainability. We mean it.

Senior Economist, Federated Hermes Limited

Insight

12 July 2021 |

Active ESG, Macro

In the latest edition of Ahead of the Curve, Silvia Dall’Angelo, Senior Economist, provides a macroeconomic update and delves into three themes: inflationary concerns, notable divergences between advanced and emerging economies and where we stand on building back better from the Covid-19 pandemic.

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Key points

The global economy is bouncing back quickly from a sharp collapse in the first half of last year. What we are seeing now, therefore, is to some extent the mirror image of developments in 2020.
Despite having increased somewhat over the last year, long-term inflation expectations are still low by historical standards.
The growing bifurcation between emerging and developed markets is a source of fragility for the recovery.
Fiscal measures targeting longer-term issues have been more elusive and there is therefore a risk of going back to a pre-Covid-19 macroeconomic scenario.