“A decisive decade for Europe”. Deutsche Bank heralds a global era of disorder

September 10, 13:07

This material is also available in Ukrainian.

The bank predicts that 2020 will usher in a new ‘structural supercycle’ (Photo: REUTERS / Kim Hong-Ji).

This is stated in a Deutsche Bank Research study called «The era of disorder “.

The bank predicts that 2020 marks the beginning of a new «structural supercycle. “It will affect everything from the state of economies to asset prices, politics, and people’s overall lifestyle. Analysts believe the coronavirus pandemic has precipitated an era of confusion, but it was not the cause.

In terms of geopolitics, the main characteristic of the new era is the tensions between the United States and China. Beijing continues on its way to reestablish its historic role as a world economic center, preferring its own values ​​to Western liberalism, according to the study. Companies that have taken advantage of globalization will find themselves in the middle of the confrontation between the United States and China.

For Europe, an era of confusion, especially the next 10 years, could be «a decisive decade ”. According to analysts, the chances of Europe getting out somehow decreased. While the potential for further integration has increased with the creation of a fund to restore the region’s economy after the pandemic, economic divergences are likely to continue to widen and create more points of tension, according to the study.

Analysts have identified eight themes that will define an era of disorder:

1. The deterioration of relations between the United States and China and the abandonment of unlimited globalization.
2. A decisive decade for Europe.
3. Even higher debt levels and helicopter money will spread.
4. Inflation or deflation?
5. Inequality will worsen, generating opposition in society and the beginning of the reverse process.
6. The generation gap will widen.
7. Discussions on climate change will gather momentum.
8. Technological revolution or bubble?