Transitioning to a net-zero society could lead to adjusted or new governmental policies, technological progress, or changes in market sentiment and market preferences. Governments, for example, could impose higher taxes on Green House Gas emissions. As a result, a company's revenue could decline, and with that, the company's creditworthiness and its ability to repay outstanding debts to banks.
The breadth of the economic recovery is also notable. The dispersion of growth rates across both countries and sectors is at its lowest level in two decades, reflecting a convergence of growth rates around higher levels. This is reassuring for the growth outlook because recoveries tend to be firmer and more robust when they are broad-based.