Martin Lück, head of capital market strategy at asset manager Blackrock.
Image: Wolfgang Eilmes
The corona pandemic is changing our world. Some trends are accelerated, others are emerging. This has consequences for investments, as the head of capital market strategy at Blackrock explains in this guest article.
D.he corona pandemic is repeatedly compared to a magnifying glass that intensifies the focus on certain trends – or to a catalyst that accelerates them. In fact, many of these trends are not new; they predate the virus. Others only emerged in the wake of the associated crisis. Which of these are likely to last longer, which will soon pass?
Global inequality is growing
The death rate during the corona pandemic is significantly higher relative to the population in emerging countries than in industrialized nations, apart from the United States and Great Britain, as well as Italy and Spain. In addition, with a view to the global distribution of per capita income, it is noticeable that the working hours lost due to Covid – and thus income – were particularly strong in the poorer regions. In general, this stronger impact on the developing and emerging countries, especially in Latin America and Asia, means that their catching-up process is slower compared to the industrialized countries of North America and Europe, for example when it comes to the adjustment of per capita income. This trend is not new, as poor economic policy in large emerging countries such as South Africa, Brazil or Turkey had worsened the economic gap in these countries long before the Corona crisis. The virus is likely to widen the gap.