FT News Briefing Global economic outlook worsening, dealmaking in the pandemic, looming EM debt crisis
May 13, 2020
The global economic outlook is grim, with the IMF warning of increasing challenges. A major reinsurance deal has collapsed, reflecting the pandemic's ongoing impact on dealmaking. Meanwhile, emerging markets face an impending debt crisis, particularly affecting countries like Argentina, Zambia, and Ecuador. The discussion draws unsettling parallels to past crises, highlighting the precarious state of economies struggling under pandemic pressure.
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Gloomy Global Outlook
- The IMF predicts a worsening global economic outlook, surpassing the initially projected 3% contraction.
- This would be the worst downturn since the 1930s Great Depression, impacting various economies.
Reopening Risks
- Kristalina Georgieva's comments highlight the struggles of governments in safely reopening economies amidst the pandemic.
- Dr. Fauci warned against disregarding health guidelines, emphasizing the risk of uncontrollable outbreaks.
Dealmaking in the Pandemic
- Despite some deals like Uber Eats' potential Grubhub takeover, the pandemic has caused others to collapse.
- Covea's planned acquisition of PartnerRe fell apart due to Covea's attempt to renegotiate the price.