The head of Germany’s largest Bank, Deutsche Bank, Christian Sewing, said that the world economy is waiting for a long recovery from the consequences of the coronavirus pandemic crisis, which will take place step by step. He was quoted by CNBC.
According to Sewing’s prediction, the recovery is likely to be uneven and affect different sectors and industries to varying degrees. The current growth in business activity is unlikely to last long, the banker believes.
He cited the tourism sector as an example. The current summer season and the partial lifting of restrictions allowed market participants to start earning, but in the end these factors may only be a “temporary lifeline”, Sewing believes.
This problem, according to him, is relevant for most countries and regions, primarily for the European Union and the United States. An additional burden on business will be the partial or complete cancellation of certain state support measures.
In its latest report, the European Central Bank (ECB) pointed to an additional risk to the Eurozone economy. It consists in the strengthening rate of the supranational currency, which is unprofitable for exporters and reduces the competitiveness of their products in foreign markets.