MANILA – Record low interest rates are “here to stay” as monetary authorities across the globe seek to accelerate the recovery of businesses affected by the COVID-19 pandemic, an economist based in Europe said on Tuesday.
Thierry Apoteker, chairman and chief economist of European research firm TAC Economics said low interest rates will remain "in the coming years" as monetary authorities let companies battered by the pandemic know that “funding would not be an issue."
Apoteker was one of the keynote speakers at the Management Association of the Philippines' (MAP) first-ever virtual CEO conference.
But Apoteker also added that governments will also intervene more actively in business as central banks provide cheap credit.
"You also have to understand that this period of low interest rates will be accompanied by a period of heightened government interference and therefore any large acquisition, any large investment requires more due diligence today than before."
The MAP CEO conference 2020, titled “A Whole New World: Reigniting the Stalled Global Economy,” focused on the challenges of a world changed by the COVID-19 pandemic, as well as recent geopolitical and economic shifts.
Aside from Apoteker, the virtual conference also featured other global economic and political experts and icons.
World-renowned economist Jeffrey Sachs, Director at the United Nations Sustainable Development Solutions Network, discussed the importance of integrating the UN’s Sustainable Development Goals in pursuing economic growth from the health crisis.
Blair Sheppard, Global Leader in Strategy and Leadership at PricewaterhouseCoopers, UK, for his part, explained the need for industries to quickly adapt to the changes brought about by the pandemic by boosting investments in technology and digitalization.
Dato Paduka Lim Jock Hoi, Secretary-General of Association of Southeast Asian Nations (ASEAN), prepared a recorded message, highlighting the need for ASEAN-member states to collaborate in addressing the deadly disease and its economic impact.