S&P Global Ratings lowered its forecast for global growth to almost zero
the International rating Agency S&P Global Ratings has lowered the forecast of world economic growth to 0.4% from 3.3% in 2020.
"In response to the ongoing extraordinary impact of the pandemic coronavirus on economic activity and financial markets we have lowered global growth to 0.4% this year, with a rebound to 4.9% in 2021. The decrease in activity will be very sharp," - said in message S&P.
According to the Agency, the decline in GDP is expected in the second quarter by 12%, and overall for the current year 1.3. Eurozone GDP will probably fall by 2.0%. In China, growth is projected at 2.9 per cent.
"We believe that the measures taken to deter COVID-19, pushed the world economy into recession," said analysts.
In S&P, will be hardest hit industries most vulnerable to social distancing and falling global demand, such as airlines, transportation and retail trade, or industry, is heavily dependent on cross-border supply chains.
Fall in commodity prices is negative for a wide range of member countries (especially Saudi Arabia and Russia), although it will benefit many countries in the Asia-Pacific region.
Pressure of capital outflow hit hardest by Mexico, Russia, Brazil and South Africa. While the member countries of the EU relatively late face challenges of the pandemic, only a few key countries in this group will be able to avoid a contraction in GDP this year (mostly in Asia and the Pacific), but even in these countries there is a sharp decrease of activity.
"Given the situation in other global regions, we expect the economic data will worsen in the short term", - concluded in the S&P.
Previously, analysts from research company IHS, Markit said that the pandemic coronavirus COVID-19 would reduce global GDP for the year by 2.8%. For the US, IHS, Markit expects a reduction in GDP of 5.4% this year.