Is Corona causing global GDP growth to come down?





·      International Industry Organization IIF lowered growth estimate from 2.7% to 0.5%



·      Uncertainty over the timing of the situation becoming normal even after the corona virus is over



Washington. Corona virus is expected to reduce the world GDP growth by 1.5% this year. The Institute of International Finance (IIF) has given information by releasing this report on Monday. IIF reduced global GDP growth forecast from 2.6% to 0.4% in 2020. The IIF says that the economy's projections will continue to change, given the conditions such as Coronavirus, the price war of OPEC countries and the cash situation in emerging markets.









·      The situation is not clear regarding the time of lock-down: IIF

The IIF says that there is great uncertainty about the economic impact of corona viruses. It is not clear how long the lock-down will continue in many countries. It cannot be said at this time how long consumers and investment related activities will be back on track after the quarantine situation ends.









·      US growth will decline by 2.8%

The port states that the US and Euro area countries are already in recession. US GDP growth this year is projected to decline by 2.9% and that of the euro area by 4.5%.










·      According to Morgan Stanley, global growth will be 0.9%

After the outbreak of Corona virus, the shock of decline in crude, shares and gold and silver, negative impact on industry and business and the relief package of central banks of different countries, the world is now moving towards a severe recession. This has been said by economists at Morgan Stanley and Goldman Sachs, two US-based investment banks — financial services company. According to him, the global growth rate may come down to 0.9 percent this year.



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