Connect with us

Hi, what are you looking for?

Editor’s Pick

Chairman of Kunst Global, Joao Vale e Azevedo sees further challenges to be faced in post-Covid economy

In 2020, the Covid-19 pandemic hit the United States economy in a way that was not experienced for generations.

With the election of Biden, it is expected that the American economy in 2021 will get a new push as the president pushes vaccination. According to The New York Times, this mandate is not only a preventive action against the Delta variant, but also an attempt to put the $20 trillion economy back in its full performance.

Overall, economists are optimistic about the recovery of the American economy, but for specialists like Joao Vale e Azevedo, chairman of KUNST Global (one of the largest equity firms in the world), there are still more challenges to be faced in the long run. “We are in a situation in which in most of the major economies of the Western World, States are still intervening with subsidies and extraordinary measures,” he explains. “Consequently, we do not have an objective picture of the situation, especially from an employment and social point of view.”

In spite of some small and family businesses surviving the 2020 crisis, Azevedo believes that they are still facing grave risks. Since Western governments have intervened heavily in the economy during the Covid-19 pandemic, the conditions of the free market have also changed, and, according to the chairman of Kunst Global, this is one of the reasons why the stock market, especially the American one, has recovered and is setting records. However, Azevedo stresses that one thing is the stock market, and another is the real economy and the rates of unemployment.

Industries like entertainment, hospitality or tourism have suffered radical changes during the pandemic, so they could adapt to the so-called “new normal.” However, for Azevedo, it is the urban development industry that reaches crossroads as offices have well adapted to remote work. With costs cut and employees already used to the system, the chairman of Kunst sees no comeback to the way financial districts used to function back in the day.

In the long term, the fact that people will be using less public transportation to go to work will prompt benefits for the environment, but in the short term, these changes in habits are very negative as they decelerate city businesses. In other words, the lack of consumer flow in the  city will possibly cause less tax revenue to feed the coffers of the municipalities.

Still, Joao Vale e Azevedo wants to think positively and believe that Western countries have learned with history how to react to times like these. For him, the Covid-19 crisis will cause a general reduction in costs, and this will create the ideal condition for investments in innovation. “If governments support entrepreneurs and businesses, I am sure that we will be able to turn the crisis into opportunity, in ways that we cannot even imagine at this time,” he concludes.

Based in London, Geneva and Luxembourg, Kunst Global invests in various sectors from energy to telecommunications, from fashion to entertainment.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS TRADE Secretary Alfredo E. Pascual’s intention to join more free trade agreements received backing from major business chambers, who declared support for participating...

News

NATIONAL IRRIGATION ADMINISTRATION PHOTO RELEASE SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) declined by 82.31% year on year to P7.905 billion in May,...

News

PHILIPPINE STAR/ MICHAEL VARCAS AGRICULTURE and fisheries planning needs to be more “bottom-up” to better meet the needs of farmers and fisherfolk, steering away...

News

REUTERS ERIC BROTEN had planned to sow about 5,000 acres of corn this year on his farm in North Dakota, but persistent springtime rains...

News

(First of two parts) Family-run businesses require structures that are necessary to ensure a smooth transition. In the Philippines, the wealth of ultra-high net...

News

THOUSANDS of supporters of President Ferdinand “Bongbong” R. Marcos, Jr. are unfazed by the rain during a free concert held in Manila on the...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.