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For Moody's, coronavirus is expected to cause an unprecedented shock in the first half of this year. And G20 economies could shrink by 0.5%
Moody's stressed that it is not possible to be certain about the impacts of the coronavirus crisis. According to the agency, the acceleration of the pandemic around the world may be an indication of a period with greater restrictive measures. As a result, economic activity may suffer even greater effects.
Moody's analysis on the impact of coronavirus in Brazil
For the company, even with the measures stipulated by the Brazilian government to cushion the effects of the coronavirus, they are reducing much of the impact on economic activity. The negative impact on employment and growth remains serious.
There will be a fiscal cost due to the economic and monetary measures taken. In addition, these measures should have a limited impact on investment and consumption, given the impact on consumer demand due to social isolation to contain the virus. “The government's ability to provide a stronger fiscal response is limited by its fiscal deficit,” said Moody's.