The four-decade era of globalization may be coming to an end, and we could be entering the age of disorder, which will reshape both the economic and political landscape.
Deteriorating USA-China relations is another theme (out of eight) that will define the next distinct era of modern times, which is hastened, but not caused by, the pandemic.
The analysts note that the Chinese economy will be closing the gap with the USA and could finally outperform it by the end of the decade, shaking to grow the rift between the two super powers.
Fortunately, this economic standoff is unlikely to trigger a real military conflict between the two states, as usually happens when a rising power tries to challenge the ruling one.
Economic war – with tariffs, sanctions, and attacks in the technology sphere – will go on instead, the analysts believe.
Deutsche Bank says that the next decade may become a make-or-break decade for Europe. Among other factors defining the future are higher debt and helicopter money (distributing cash to the public) becoming mainstream policies which are likely to spike inflation.
Inequality may even get worse in the post-Covid-19 world, before a backlash and reversal takes place, the German bank explains.
Inequality is closely connected with the inter-generational gap, but the analysts expect that the number of younger voters will exceed those born before 1980 by the end of the decade. This could lead to major policy changes in many spheres – from taxes to climate.
RT. com / ABC Flash Point Economic News 2021.