Corona Destroys Countries .. Goldman Sachs: The Global Economy Shrinks at the Fastest Pace
Goldman Sachs said it expects real GDP to shrink globally by around 1% in 2020, more than the economic downturn caused by the global financial crisis in 2008.
Governments around the world are taking unprecedented measures to contain the spread of the Coruna virus, which threatens a global economic downturn.
"The Corona crisis - or rather the ways to confront this crisis - places physical (not financial) restrictions on economic activity in an unprecedented way in the post-war history," World Investment Bank said in a note to its clients published late Sunday.
The bank expects real GDP to shrink in "advanced" economies in the second quarter, including a 24% decline in the United States compared to 2019 - in the event of a prolonged period of the current crisis driven by falling stock indices, declining production and disrupting aspects of life - which exceeds The record decline that the country recorded after the Second World War two and a half times.
The global economy was hit by a sharp decline in various sectors, most notably services, tourism, travel and industry, accompanied by a sharp drop in consumption, and a government response to pump billions to save the private sector.
In a previous note, the bank reduced its estimates of China's GDP in the first quarter of the year to a contraction of 9% year on year, compared to previous estimates of a growth of 2.5%.
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The bank attributed the reduction to what official data showed about the decline in industrial activity in China at the largest pace in nearly three decades during the first two months of the year, after the paralysis caused by the emerging corona virus to the second largest global economy.
The World Economic Outlook report - released by the International Monetary Fund last January - expected the global economy to grow by 2.9% in 2019 and climb to 3.3% in 2020.
Goldman Sachs said it expects real GDP to shrink globally by around 1% in 2020, more than the economic downturn caused by the global financial crisis in 2008.
Governments around the world are taking unprecedented measures to contain the spread of the Coruna virus, which threatens a global economic downturn.
The bank expects real GDP to shrink in "advanced" economies in the second quarter, including a 24% decline in the United States compared to 2019 - in the event of a prolonged period of the current crisis driven by falling stock indices, declining production and disrupting aspects of life - which exceeds The record decline that the country recorded after the Second World War two and a half times.
The global economy was hit by a sharp decline in various sectors, most notably services, tourism, travel and industry, accompanied by a sharp drop in consumption, and a government response to pump billions to save the private sector.
In a previous note, the bank reduced its estimates of China's GDP in the first quarter of the year to a contraction of 9% year on year, compared to previous estimates of a growth of 2.5%.
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The bank attributed the reduction to what official data showed about the decline in industrial activity in China at the largest pace in nearly three decades during the first two months of the year, after the paralysis caused by the emerging corona virus to the second largest global economy.
The World Economic Outlook report - released by the International Monetary Fund last January - expected the global economy to grow by 2.9% in 2019 and climb to 3.3% in 2020.
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