Rural economies: new digital technologies will not offset remoteness
The pandemic has created a rise in working from home, and the new technologies may similarly make it easier for some rural businesses to compete with urban rivals. But we doubt that they will produce a major relocation of activity. The advantages of urban economies, plus employers’ scepticism about remote working, imply that changes will be incremental.
What you will learn:
- What is very striking is that in England, it is only urban areas with large cities that clearly out-perform rural areas
- Crucially, productivity tends to be much lower in rural than urban areas, with higher value-added service activities concentrated in cities.
- Improved digital technology may partly help levelling the playing field, but most employers are sceptical about adopting long-distance remote working.
Latin America Key Themes 2024 – Slower growth, but it’s not all bad news
Growth in most LatAm economies will be below consensus. Economic momentum has surprised to the upside through most of 2023, but the full effects of record global and domestic monetary tightening are yet to be seen.Find Out More
Easing financial conditions offer CRE some respite
Our measure of financial conditions has become less restrictive in the US and started to loosen in the eurozone and the UK, reflecting investors' expectations that interest rates have peaked. This should aid the outlook for commercial real estate (CRE) on the margins, although the scale of past rate hikes, sluggish economies, and structural headwinds mean the sector still confronts challenging fundamentals.Find Out More