The world economy is expected to contract by 0.5% in 2020 due to the negative impact of coronavirus, Moody’s, the U.S. based credit rating agency announced late Wednesday.

The agency’s previous forecast (November 2019) for this year was 2.6%, it said in a press release.

The financial services company, however, said it expected the global economy to grow by 3.2% in 2021.

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

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