G20 countries projecte<\/strong>d to contract by 4% in 2020 as coronavirus restrictions exact high economic cost, says rating agency<\/strong><\/p>\n

Moody’s on Tuesday projected all G20 economies will contract by 4% in 2020 amid coronavirus, deeper than its previous forecast as restrictions create high economic cost.<\/p>\n

The global rating agency expect G20 economies to pick up recovery next year and grow 4.8%.<\/p>\n

The agency’s previous forecast unveiled last month was minus 0.5% for 2020 and 3.5% for 2021.<\/p>\n

Pointing to the rapid accumulation of economic costs of the coronavirus crisis amid the near shutdown of the global economy, Moody’s foresaw G20 advanced economies as a group to shrink by 5.8% this year.<\/p>\n

G20 advanced economies are projected to grow 4.2% next year, below pre-coronavirus levels.<\/p>\n

“However, it will likely take around two years for the global economy to reach pre-coronavirus real GDP levels,” it added.<\/p>\n

The length of time and extent that countries lift restrictive measures and reopen their economies will determine the pace of the recovery, the report underlined.<\/p>\n

The US economy will contract by 5.7% in 2020, followed by a rebound of 4.2% growth next year, the agency noted.<\/p>\n

The eurozone is expected to shrink by 6.5% this year and expand by 4.7% in 2021.<\/p>\n

Moody’s forecast Chinese economy to grow 1.0% in 2020, followed by 7.1% growth in 2021, partially reflecting a revival in demand from its trading partners.<\/p>\n

Turkish economy is foreseen to shrink by 5% this year and gain momentum next year, growing 3.5%.<\/p>\n

Noting that the global integration within the world economy will likely shift driven by coronavirus, Moody’s said: “For example, the coronavirus shock has created supply chain disruptions and could also fundamentally change consumption patterns, which could lead to a large-scale reorganization of economies over time.”<\/p>\n

Anadolu \/ Balkantimes.press<\/p>\n","protected":false},"excerpt":{"rendered":"

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