The world will emerge from COVID with considerably higher levels of debt while will be left structurally less global by the crisis, spurring on the de-globalization trend, according to economists at UBS. Key quotes “We expect government debt as a percentage of GDP to be about 15-25 percentage points higher at the end of 2021 than it was at the end of 2019.” “Interest rates have little room to go lower, which limits the potential for high-quality bonds to provide significant positive returns in the event of an equity market downturn.” “Central banks may be prepared to tolerate a rate of inflation somewhat above the 2% target rate for a year or two. Inflation between 2% and 5%, if not for too long, would likely not add to inflation uncertainty risk, and could help modestly reduce debt burdens.” “Governments are likely to view more goods as being strategically important, and so encourage more domestic production. Meanwhile, companies have become more aware of the operational risks posed by long global supply chains. Bringing production closer to the end market is likely to become a more common response.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD extends losses and approaches 1.2200 FX Street 3 years The world will emerge from COVID with considerably higher levels of debt while will be left structurally less global by the crisis, spurring on the de-globalization trend, according to economists at UBS. Key quotes “We expect government debt as a percentage of GDP to be about 15-25 percentage points higher at the end of 2021 than it was at the end of 2019.” “Interest rates have little room to go lower, which limits the potential for high-quality bonds to provide significant positive returns in the event of an equity market downturn.” “Central banks may be prepared to tolerate a rate… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.