02262021 :: Friday finance

Friday was day 38 of the Biden-Harris administration. Presidential actions included an executive order on America’s supply chains.

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  • Moody’s revised upward Taiwan’s outlook to positive from stable since the nation’s governance appears stronger, and its economy more durable, than the ratings agency previously gave it credit for. Furthermore, it has a track record of solid decision making that supports its fiscal standing, as well as national trends in place that continue to highlight its competitiveness.
  • Moody’s downgraded Tunisia with a negative outlook given deteriorating governance and a contentious relationship with civil society institutions that will complicate decision making and policy implementation in the service of more adequate debt management, among other objectives.
  • S&P Global upgraded New Zealand with a stable outlook on account of how well the nation has contained SARS-CoV-2 transmission relative to most. It is believed that even should things worsen again temporarily in the form of another outbreak, or sectors such as real estate take a hit, the country has the capacity to weather the challenges. If there were ever any doubt over whether it made economic sense to contain the virus and financially support the general public as opposed to carrying on as if it didn’t exist and letting it run rampant, the example of New Zealand, and Australia for that matter, should put that to rest.
  • S&P Global downgraded Cape Verde with a stable outlook as it, along with international tourism, continue to be negatively impacted by the pandemic. The ratings agency does not see an economic recovery to pre-pandemic levels until 2024 here.
  • Moody’s has revised upward its projections of US and EM growth while cutting that of Europe.
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Footnotes

¹ The data quality of these numbers may still be compromised, as outlined in a prior issue and based on a GAO report.

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