On Wednesday, credit rating agency Moody’s shared its expectation that the global economy would contract by 0.5% this year due to the coronavirus pandemic.
For advanced countries, the economy could contract by 2% this year while the emerging economies might instead grow by 1.9%. For the Eurozone, Moody’s expected a drop of 2.2%.
The global financial sector is tumbling to the levels last seen during the 2008 financial crisis. The longer the crisis persists, the real economy and financial sectors could be exposed to the existing vulnerabilities and push to a recession.
Going forward, the agency estimated that in 2021, the global economy could grow by 3.2%.
