Coronavirus to spark “severe” global recession

Covid19

The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty we have attempted to gauge the impact and updated our forecasts.

We now expect to see the world economy contract this year by 3.1%, before rebounding by 7.2% in 2021.

The forecast incorporates a severe recession in the first half of the year which, even with a rebound in the second half, means 2020 is set to be the worst year for activity since the 1930s.

Although there is considerable support from central banks and governments, the dramatic downturn reflects the effect of shutting down large parts of the economy as the authorities attempt to suppress the virus.

View Article