Goldman Sachs expects 1% decline in global GDP due to coronacrisis

US, WASHINGTON (ORDO NEWS) — Goldman Sachs expects global GDP to decline by 1% in 2020, and it will be a stronger reduction than after the 2008 financial crisis.

Various governments are taking unprecedented measures to curb the coronavirus epidemic. These same measures can trigger a recession in the global economy.

“The coronacrisis – or, to be more precise, the response to the crisis – is a physical (as opposed to financial) constraint on economic activity, unprecedented in post-war history,” the investment bank wrote to clients.

Goldman Sachs expects developed economies to “drop sharply” in the second quarter, including a 24% drop in US economic activity. This is two and a half times more than the previous post-war anti-record.

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