Madrid 2,204 EUR -0,02 (-0,81 %)
Madrid 2,204 EUR -0,02 (-0,81 %)

ECONOMY | 23.07.2021

Financial newsletter

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Risks and challenges facing the global economy

The reactivation of certain economic activities and the rapid progress being made with vaccination programs have given advanced countries a slight respite. However, the most recent Economic and Industry Outlook report points out that they will have to tackle various issues in the coming years – the geopolitical crisis, economic policy and the climate emergency – if they are to avoid seeing their post-pandemic economic recovery gains eliminated.

Latin America’s long and uncertain road to recovery

The depreciation of the region’s currencies and the fall in equities have provoked a return to risk aversion by emerging countries. The latest Economic and Industry Outlook report, prepared by MAPFRE Economics, highlights out that the low protection levels implicit in the informal economy, the inequality gap and political instability could also slow the pace of growth pace in Latin America.

MAPFRE Economics keeps the growth forecast for the global economy

MAPFRE’s research arm, in its quarterly review on economic forecasts and expected performance of the insurance sector, underlines that the world economy will close out 2021 with 6% growth in GDP, followed by 4.4% for 2022. It also explains that growth rate will decrease in emerging countries as a result of the pandemic and points out that any upturns in inflation will be transitory”.

MAPFRE’s commitment to alternative assets

In an increasingly complex interest rate environment, the insurance sector is gradually turning its attention to alternative investments that generate long-term profitability. The World of MAPFRE magazine takes a look at this growing trend, and examines the case with MAPFRE, where such investments are focused on real estate, infrastructure or private equity, always hand in hand with the most reputable partners.

“Summer is a time of lack of liquidity and this magnifies the movements”

The IBEX has experienced a turbulent start to the week’s trading with a 6% drop. However, Alberto Matellán, chief economist at MAPFRE Inversión, clarifies on Radio Intereconomía that this negative market sentiment will not continue for the rest of the summer. He also recommends retail investors not to get nervous and avoid looking at the market over the next few weeks.

Standard & Poor’s maintains MAPFRE’s ratings with a stable outlook

The rating agency Standard & Poor’s has published its decision to maintain MAPFRE’s issuer rating (A-), that of its senior debt (A-) and that of its subordinated debt (BBB). In this way, the American firm has positively valued the “wide geographic diversification and leadership positions in its main business units”, as well as “exceptional” liquidity levels.

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