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March 24, 2020 It is a global economic tsunami. Eurozone GDP will drop 2.7% overall this year, with a drop of 5.7% in the first quarter and 7.4% in the second quarter due to coronavirus.

This was revealed by a Moody's report entitled 'Covid-19: Global Economic Tsunami', after the estimate was + 1.3% in January.

"The damage to the world economy will depend on the trajectory of the virus and how governments respond," says the agency. For the USA, a contraction of 0.5% is estimated, globally of 0.4%. According to Moody's, due to "poor management", the virus can do more harm in the US than in Italy.

Layoffs, closings, growth in the balance
Increased layoffs, reduced investment and serious spillovers on consumption are just some of the effects that the coronavirus pandemic will leave behind. This is what is read in a report by Moody's Analytics, in which the chief economist Mark Zandi stresses that "surely there will be an increase in bankruptcies and bankruptcies of companies and an increase in the decline in investments, which will prevent a future economic recovery".

Severe recession
The global economy is plunged into a severe recession, "Moody's analysts explain." The virus - they continue - has led to the closure of significant parts of the Asian and now European and US economies. "

Central banks "have reacted aggressively but are running out of space as interest rates have reached the lower limit of zero," stresses Moody's.


China on a swing
Moody's Analytics, as stated in the report signed by Zandi, cut the estimates for growth in China in 2020 to + 1.7%, from + 6.2% in January. For the first quarter the expectation is -27.2% (from + 7.2%), followed by a subsequent surge with + 21.4% in the second (from + 6.6%), + 28.9% in the third (from + 5.5%) and + 12.7% in the fourth (from + 5.8%).