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