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“Global economy will remain in a tenuous position despite a return to GDP growth in 2021,” Moody’s Investors Services said in its latest report released on Monday.

Additional takeaways

“Slow economic recovery and uneven pandemic effects will shape the 2021 credit environment. “

“Governments will face policy challenges, with future of fiscal support and geopolitical and trade tensions a top focus.”

“Global credit conditions to likely improve overall in 2021, aided by unprecedented fiscal, monetary policy support in wake of COVID-19 crisis. “

Unlike typical recession periods when the growth of private-sector debt slows, debt growth will accelerate for many sectors through 2021.”

“Political, geopolitical risk to create policy uncertainties, particularly with regard to the direction of US-China relations and Brexit. “

“Debt in coronavirus downturn and recovery will likely rise faster and further compared to previous recession cycles.”

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