Inside this episode:

Atsi Sheth from the Credit Strategy team and Yves Lemay from the Sovereign Risk Group discuss the outlook for the global economy and sovereign credit in 2021 in light of the seismic financial shock caused by the coronavirus pandemic. They also outline the differing outlooks and credit risks faced by three key economies: the US, China and the UK.

Related content:

1. Pandemic fallout drives negative outlook for global sovereigns in 2021, complicates policy choices. The widespread fallout from the pandemic and measures to contain it have created an economic, fiscal and social shock for sovereigns in 2021 and beyond. While weaker sovereigns will be hardest hit in the short term, all sovereigns across the rating spectrum will likely face difficult medium-term policy trade-offs triggered or exacerbated by the crisis.
2. Nascent economic rebound takes hold globally but will remain fragile. A tentative economic recovery is underway but the path is beset by uncertainty. Effective pandemic management, the development and distribution of a coronavirus vaccine, and the continuation of government policy support to households and businesses will determine the economic trajectory over the coming year.