Global ETF News Older than One Year
The Hidden Wealth of Nations: Groundwater in Times of Climate Change
June 14, 2023--Groundwater is our most important freshwater resource, but the lack of systematic analysis of its economic importance has evaded attention from policymakers and the general public-threatening the resource. The Hidden Wealth of Nations: The Economics of Groundwater in Times of Climate Change report offers new data and evidence that advances understanding of the value of groundwater, the costs of mismanagement, and the opportunities to leverage its potential.
Its findings also reflect on the policy issues policymakers confront when attempting to align the private and social costs of groundwater use. A central message of this report is that groundwater needs to be politically prioritized and should be carefully managed through integrated cross-sectoral action to benefit society, the economy, and the environment.
Source: worldbank.org
World Bank-The Hidden Wealth of Nations : The Economics of Groundwater in Times of Climate Change
June 14, 2023--Untapped or overdrawn, groundwater is a critical asset for poverty reduction, resilient growth, and climate adaptation. It was valued by ancient civilizations, which relied on groundwater for their water supplies, as the Romans did,even when building cities close to rivers. Groundwater today,and more so in the future, will be a foundation for adapting to climate change.
It provides 49 percent of the volume of water withdrawn for domestic use by the global population and around 43 percent of all water withdrawn for irrigation, watering 38 percent of the world’s irrigated land. Its unique economic attributes, including its common-pool nature, area blessing-and a curse. And its characteristics determine its present and long-term uses and possible negative spillovers.
These need to be brought out of the shadows for the resource to yield its potential and be managed adequately.
Source: worldbank.org
Demand grows for Asian investment products that exclude China
June 12, 2023--Asset managers say clients are worried about geopolitical tension and sub-par growth in Chinese economy
Global fund managers say they are rushing to meet client demand for new Asian investment products that exclude China, as investor appetite for the region's largest economy is hit by slowing growth and mounting geopolitical risk.
Fund managers said requests for "ex-China" products included the possibility of "Asian allies" funds that would invest in US-friendly markets and provide clear insulation from Beijing-related geopolitical risk in the region.
Source: ft.com
Leveraged and inverse ETFs are 'like walking into a casino'
June 9, 2023--Providers argue they are useful, but critics say they are being used for short-term gambling
The Foreign & Colonial Government Trust listed on the London stock exchange in 1868 with the explicit aim of allowing small investors to gain exposure to a diversified portfolio of government bonds.
Since then a variety of newer, glossier structures have emerged, from mutual funds to exchange traded funds, but the raison d'être remained the same: to provide a ready-made portfolio of securities to an investor almost irrespective of their means, allowing them to tap into "the only free lunch in investing"-diversification.
Source: ft.com
IMF Working Paper-Restructuring Reforms for Green Growth
June 9, 2023--Summary:
Policymakers across the world are striving to tackle the century-defining challenge of climate change without undermining potential growth. This paper examines the impact of structural reforms in the energy sector (electricity and gas) on enviromental outcomes and green growth indicators in a panel of 25 advanced economies during the period 1970-2020.
We obtain striking results. First, while structural reforms so far failed in reducing greenhouse gas emissions per capita, there is some evidence for greater effectiveness in lowering emissions per unit of GDP. Second, although energy reforms are not associated with higher supply of renewable energy as a share of total energy supply, they appear to stimulate a sustained increase in environmental inventions and patents per capita over the medium term. We also find strong evidence of nonlinear effects, with market-friendly energy reforms leading to better environmental outcomes and green growth in countries with stronger environmental regulations. Looking forward, therefore, structural reforms should be designed not just for market efficiency but also for green growth.
Source: imf.org
OECD-Global economic outlook improving, albeit to a low growth recovery
June 7, 2023--The global economy has begun to improve, but the recovery will be weak, according to the OECD's latest Economic Outlook. The Economic Outlook projects a moderation of global GDP growth from 3.3% in 2022 to 2.7% in 2023, followed by a pick-up to 2.9% in 2024.
Lower energy prices are easing the strain on household budgets, business and consumer sentiment are recovering, albeit from low levels, and the re-opening of China has provided a boost to global activity.
Headline inflation in the OECD is projected to decline from 9.4% in 2022 to 6.6% in 2023 and 4.3% in 2024. The decline in inflation is due to tighter monetary policy taking effect, lower energy and food prices and reduced supply bottlenecks.
GDP growth in the United States is projected to be 1.6% in 2023, before slowing to 1.0% in 2024 in response to tight monetary and financial conditions. In the euro area, declining headline inflation will help to boost real incomes and contribute to a pick-up in GDP growth from 0.9% in 2023 to 1.5% in 2024. China is expected to see strong increases in GDP growth in 2023 (with 5.4%) and 2024 (with 5.1%), due to the lifting of the government's zero-COVID policy.
view A long unwinding road OECD Economic Outlook, June 2023
Source: oecd.org
World Bank-Global Economy on Precarious Footing Amid High Interest Rates
June 6, 2023--Global growth to slow to 2.1% in 2023, with prospects clouded by financial risks
Global growth has slowed sharply and the risk of financial stress in emerging market and developing economies (EMDEs) is intensifying amid elevated global interest rates, according to the World Bank's latest Global Economic Prospects report.
Global growth is projected to decelerate from 3.1% in 2022 to 2.1% in 2023. In EMDEs other than China, growth is set to slow to 2.9% this year from 4.1% last year. These forecasts reflect broad-based downgrades.
Most EMDEs have seen only limited harm from the recent banking stress in advanced economies so far, but they are now sailing in dangerous waters. With increasingly restrictive global credit conditions, one out of every four EMDEs has effectively lost access to international bond markets.
view the World Bank Global Economic Prospects June 2023
Source: worldbank.org
How Falling Home Prices Could Strain Financial Markets as Interest Rates Rise
May 31, 2023--Countries with elevated housing prices and high household debt issued at floating rates are particularly vulnerable to monetary policy tightening
The pandemic propelled housing prices to record levels in many countries, especially advanced economies, amid low interest rates and tight property supplies. Then prices started falling late last year in many countries, while others saw the pace of gains slow.
The deterioration was more pronounced in advanced economies with signs of stretched valuations before and during the pandemic. With central banks raising interest rates to contain inflation, the average mortgage rate reached 6.8 percent in advanced economies in late 2022, more than doubling from the start of last year. Now, if borrowing costs keep rising or remain elevated for longer, demand and prices are likely to weaken further.
Source: imf.org
World Bank-Record High Revenues From Global Carbon Pricing Near $100 Billion
May 23, 2023--Direct carbon pricing instruments, key policy to decarbonization, now cover almost a quarter of global greenhouse gas emissions, according to a new World Bank report
Revenues from carbon taxes and Emissions Trading Systems (ETS) have reached a record high, about $95 billion, finds the World Bank's annual "State and Trends of Carbon Pricing" report released today.
This is despite the challenging context for governments facing high inflation, fiscal pressures, and energy crises.
"Carbon pricing can be an effective way to incorporate the costs of climate change into economic decision making, thereby incentivizing climate action." said Jennifer Sara, Global Director for Climate Change at the World Bank. "The good news from this report is that even in difficult economic times, governments are prioritizing direct carbon pricing policies to reduce emissions. But to really drive change at the scale needed, we will need to see big advances both in terms of coverage and price."
view the World Bank State and Trends of Carbon Pricing 2023
Source: worldbank.org
OECD-Of bytes and trade: Quantifying the impact of digitalisation on trade
May 23, 2023--This paper provides an overview of the evolving nature of digital trade and digital trade policies. It shows that digital trade has been growing faster than "non-digital" trade. By 2018, 24% of global trade (USD 5.1 trillion) could be considered digital trade. In parallel, countries have embraced digital trade provisions in trade agreements and new digital economy agreements have emerged.
The empirical analysis shows that growing digital connectivity delivers a double dividend, increasing both domestic and international trade. It also shows that digital trade chapters have the potential to double the effect of trade agreements, while reductions in domestic barriers affecting digital trade have a strong export-enhancing effect, particularly in digitally-deliverable services. Overall, the results suggest that digital connectivity and digital trade policies play a significant and growing role in reducing trade costs and increasing trade across countries at all levels of development. The paper calls for wider participation and ambition in discussions at the WTO.
Source: oecd.org
