Full overview
The economic impact of Covid-19 has had huge repercussion's on financial markets around the globe as market risk aversion accelerated and stock markets declined. However, having driven global growth in the last few decades and despite the global economic crisis of 2020, Asia’s role in the world economy is set to become more prominent in the coming years.
During 2020 Central Banks across the world proactively intervened to calm markets. In Asia, the Bank of Japan issued an emergency statement indicating that it would inject liquidity into the market by increasing asset purchases. Meanwhile the People’s Bank of China poured more than US$240 billion of liquidity into the financial system. As the unprecedented government and central bank stimulus looks set to continue in next few years, asset prices in Asia are expected to gain momentum.
COVID-19 may have dimmed short-term growth prospects, but many Asian economies are already displaying signs of recovery. The post-pandemic world will no doubt produce new economic realities, but even so, the long-term outlook for Asia remains bright. As we consider the long-term prospects of the region, under the new realities, just how can financial institutions ensure that they are at the right side of change? How will Asian investors adjust and enhance their fund allocations to build back better? With a focus on investment perceptions and opportunities in Asia, this discussion explores the themes arising in a post-Covid-19 world and explores the possibility of building back better and being on the right side if change.