S&P rating agency predicts global economy contraction by 2.4%

US, WASHINGTON (ORDO NEWS) — The international rating agency S&P Global has reduced its forecasts for global economic growth in 2020, reports Reuters.

Now the agency predicts that due to the introduced locks to contain the outbreak of coronavirus this year, the global economy will shrink by 2.4%, while in the US and the eurozone it will fall by 5.2% and 7.3%, respectively.

Although the forecasts were not as impressive as the forecast of a 3% drop in the global economy from the International Monetary Fund (IMF) at the beginning of the week, S&P actions are likely to cause concern about a further decline in sovereign and corporate ratings.

“The flow of data reflecting the economic impact of containment measures against COVID-19 has been getting worse and worse,” a new report by leading S&P economists from the world and regional economies said.

“Now we are witnessing a fall in global GDP by 2.4% this year, and the US and Eurozone economies will decline by 5.2% and 7.3%, respectively. We expect that in 2021 global growth will recover to 5.9% “, they added.

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