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COVID-19 and Global Capital Flows

Research
17 July 2020

This study examines the impact of the COVID-19 crisis on global capital flows and measures taken by various countries regarding currency control.

This study by the Organisation for Economic Cooperation and Development examines the impact of the COVID-19 crisis on global capital flows and measures taken by various countries regarding currency control. In addition to having dramatic implications for the health of people around the world, the COVID-19 outbreak has triggered major economic and financial consequences: GDP is now expected to contract by 6% globally in 2020; trade could fall by 12–32%; and FDI flows are expected to fall by around 40%. The global economic shock brought about by COVID-19 has led to a great many consequences. In particular, there has been an unprecedented outflow of capital from emerging market economies, as foreign investors have been selling their portfolio assets. The scale and speed of capital outflows in the current crisis have been about four times larger than during the 2008 financial crisis. In the face of this, currency-based measures have become an important part of emerging market economies’ policy toolkits. Countries will continue to review and adjust their support measures, including by drawing upon the experience of other countries in this area. As market fragmentation could make it more difficult to raise funding, countries have a strong interest in cooperating to find the most appropriate tools to address the crisis. Here, international cooperation will be key.

Anlytics on the topic

All analytics
Expert opinion
4 August 2020
Challenges of 2020 to Revise Sport’s Formats and Mission

How did the pandemic shift priorities to mass sport over high performance athletics? What principles will determine the programme of the next Olympic Games? What makes cybersport an integral part of corporate culture? What is the humanitarian role of sport in the post-COVID world? Why challenges of 2020 need to be factored into the Sport Strategy 2030? Georgy Bryusov, Deputy CEO and Head of Sport, Entertainment and Special Programmes at the Roscongress Foundation, shared his view on these important issues.

Articles
4 September 2020
Throwing in at the Deep End: How the Coronavirus Pandemic Influenced Mining and Metal Production Market?

KPMG Mustread presents an article that addresses the situation in the mining and metal production market after the coronavirus pandemic. The article reflects sentiments of major international and Russian metal production companies as well as demand behavior outlook in the nearest future.