BUSINESS

MOODY'S: GLOBAL TRADE TO GROW 9.0-11 PCT THIS YEAR

14/10/2021 12:19 PM

KUALA LUMPUR, Oct 14 -- Moody’s Investors Service expects global trade to grow by 9.0 per cent to 11 per cent in 2021 in light of a strong rebound across advanced economies before slowing in 2022.

The ratings agency said global trade volumes have returned to pre-COVID19 levels.

“As the strength of consumer demand drives the economic recovery, supply-side constraints will weigh on trade volumes at least through the first half of 2022. Risks to the global economic recovery remain high, given the slow pace of vaccination in many countries,” it said in its Global Trade Monitor for October 2021.

Moody’s said climate change and increased digitalisation of the global economy are driving demand for global reforms. However, economic and geopolitical considerations will hamper the implementation of global initiatives.

“Governments’ ‘buy national’ strategies and restrictive trade measures will add to these challenges,” it added.

Meanwhile, implementation of global climate policies brings challenges and short-term higher costs to businesses, the ratings agency said. 

It noted that mandatory requirements on the environment, social and governance (ESG) disclosures for all listed companies globally could be announced in the run-up to the 2021 United Nations Climate Change Conference (COP26) to help investors better assess ESG risks and facilitate the reallocation of investments to sustainable assets, a credit positive.

COP26 is scheduled to be held in Glasgow, Scotland from Oct 31 to Nov 12, 2021. 

-- BERNAMA

 


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