World Economy To Contract In 2020 Due To Corona-virus
The world economy is expected to contract by 0.5% in 2020 due to the negative impact of corona-virus, Moody's, the U.S. based credit rating agency announced late Wednesday
ISTANBUL, (UrduPoint / Pakistan Point News - 26th Mar, 2020 ) :The world economy is expected to contract by 0.5% in 2020 due to the negative impact of corona-virus, Moody's, the U.S. based credit rating agency announced late Wednesday.
It said that although central banks had responded quickly, the "financial sector's volatility has exploded to levels last seen during the 2008 global financial stress." "The financial market stress is a reflection of deep anxiety and uncertainty around the real economic costs that households and businesses around the world will bear," the statement said, adding that job losses will increase globally in the next few months.
"The longer these conditions persist, the more they would potentially feed self-sustaining recessionary dynamics, and expose existing vulnerabilities in the real economy and financial sectors," it added.
Moody's forecast for advanced economies is negative 2% in 2020 while positive 1.9% for emerging countries. It expects a decline of 2.2% for the euro-zone.
The number of confirmed cases worldwide has surpassed 472,000 while the death toll is over 21,300, according to the latest figures by the U.S.-based Johns Hopkins University.
The virus has made several countries enforce a lock-down: shutting down schools and universities, markets, malls, restaurants, as well as suspending air and land -traffic.