The tourism sector, which accounts for an estimated 26% of real output, has significantly exceeded expectations when compared to initial forecasts for the first half of 2021. This recovery is expected to continue over the medium-term and support the recovery of other economic sectors. Other important sectors of the economy continue to rebound as well.
Financial creativity had its price. Banks increased their demand for highly-skilled talents, bidding up the market clearing wage in this industry. Whether or not financial employees have been overcompensated is a difficult question. But they have certainly been given the wrong incentives. A less difficult question is whether talent was always and everywhere employed in a productive way. Here my answer is no.