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Guriga> Blog> The economy is forecast to contract by 0.9% in 2020

The economy is forecast to contract by 0.9% in 2020

May 05, 2020
The latest report from the UN's department of economic and social affairs, released on April 1st, predicts that the global economy will contract by 0.9% in 2020, rather than grow by 2.5% as previously forecast, because of COVID 19.

If national restrictions on the outbreak continue into the third quarter of this year and fiscal measures fail to boost incomes and consumption, the economy could contract by more than 0.9 per cent, the report said.

The duration of restrictions on movement and activity in major economies, and the size and effectiveness of subsequent fiscal measures, will together determine the extent to which the global economy is affected, either by a mild or deep recession.

In addition, the measures taken by rich developed countries in response to the outbreak will have a negative impact on economic development.
The impact will soon spill over to developing countries, in the form of reduced trade and investment.
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