We now expect an even deeper output contraction of 5.7% in the CEEMEA region. Effects of the COVID-19 shock are increasingly visible in the data for March-April. We downgrade growth in South Africa, the Czech Republic, Ukraine, and Russia. The fall in activity prompted authorities to implement fiscal stimulus measures. Together with cyclical revenue weakness, additional spending will widen deficits. CEEMEA central banks cut rates and some began government bond purchases.
The IIF submitted a comment letter to the International Accounting Standards Board (IASB) Exposure Draft
We downgraded global and LatAm growth markedly in April, but since then activity has contracted even faster than expected.
Capital inflows to the MENA region will remain high despite the global backdrop. We expect the plunge in oil prices and widening fiscal deficits will lead to a decline in private non-resident capital flows to oil importers, but will be partly offset by higher official flows.
The May 2020 IIF Global Regulatory Update provides updates on current work streams.
This week featured Maha Eltobgy, Head of Shaping the Future of Investing, World Economic Forum, speaking with Sonja Gibbs, Managing Director and Head of Sustainable Finance, Global Policy Initiatives, IIF.
Russia’s assets are stabilizing, and investors are showing renewed interest. The “Fortress Russia” strategy has reduced macroeconomic vulnerabilities. We expect both the fiscal and monetary policy responses to remain modest. As the economy is set to reopen, COVID-19 infections continue to spread.
John Collins of FS Vector joins FRT to discuss the Libra White Paper 2.0 and key updates in the initiative, against the backdrop of various developments with central bank digital currencies (CBDCs).