The global economy is already in complete recession and is experiencing great difficulties worldwide due to the global outbreak of the Coronavirus.
The impact of the coronavirus pandemic on economic activity has become increasingly evident and widespread in recent days, according to projections from economists consulted by Reuters amid a series of stimulus measures by central banks this week.
The spread of the terrible disease caused by the Coronavirus has thrown financial markets around the world into complete disarray, with countries like France, Italy, Spain, and Brazil already suffering directly from these impacts.
The panic is increasingly evident in various aspects, namely in stocks, bonds, gold and commodity prices, underlining expectations of severe economic damage resulting from the coronavirus outbreak.
Researchers reveal that the global economic expansion had already ended badly in recent months since the virus began to spread, however, with the spread of the disease, the new projections are of intense impact.
In a G1 editorial, the head of Global research, Bruce Kasman, said: Last week, we concluded that the Covid-19 shock will produce a global recession as almost the entire world will experience contraction between February and April.”
According to G1, new worst-case scenario growth forecasts estimated just a few weeks ago are now, in some cases, the central scenario for private sector economists in Reuters surveys.
The not-so-pleasant, evolving news about the Coronavirus has triggered 'forecast jumps', with economists and strategists repeatedly lowering their forecasts.
But what are the new projections?
For Brazil, the outlook for the coming months is one of predicted chaos, with experts saying the global economy will grow by 1.6% this year, nearly half the 3.1% forecast in the January survey and the weakest since the 2007-2009 global financial crisis. Forecasts for global GDP in 2020 ranged from -2.0% to +2.7%.
Furthermore, consistent with this, our economists now expect recessions in Europe, Japan, Canada, and possibly the United States,” said the Goldman Sachs economic research team.
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