Coronavirus is crippling the global economy
The impact of the coronavirus pandemic raging on the planet on the global economy is turning into much more serious problems than predicted.
Nezavisimaya Gazeta writes about this, citing current forecasts of financial analysts and economic experts.
It is noted that the volume of industrial production in China in January-February decreased at the fastest pace in the last 30 years - by 13,5% in annual terms. At the same time, retail trade dropped by 20,5% over the same period, and investment in fixed capital decreased by 24,5%.
In addition, the European Commission reported that by the end of 2020, the EU's GDP could decline by about 1%, although growth was previously expected at 1,4%. Goldman Sachs analysts warned that US GDP growth is now projected to be zero in the first quarter, followed by a 5% decline in the second quarter. In the third and fourth quarters, recovery growth of around 3–4% is expected. At the end of 2020, the US economic growth estimate was worsened to 0,4% from the previously expected 1,2%.
Even worse are the estimates of analysts from the JPMorgan holding: they say that the economic recession in the United States may be recorded in both the first quarter and the second.
“After these results and updated forecasts, there is no longer any doubt about the devastating macroeconomic effect of the coronavirus. Although just a month ago, even the most authoritative organizations, although they warned about the problems associated with the epidemic, which was then reclassified as a pandemic, still did not allow such serious consequences. For example, Bank of America warned at the end of February that in 2020, global economic growth for the first time since the global crisis of 2008–2009 could be below 3% – only 2,8%,” the publication writes.
At the same time, the IMF assured a month ago that the global economy at the end of 2020 would accelerate to 3,3% after growing by 2,9% in 2019.
As PolitNavigator reported, American bankers predicting “real disaster” for the global economy.
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