Rating agency S&P Global slashes global forecasts

Rating agency S&P Global slashes global forecasts

© Reuters. © Reuters.

LONDON (Reuters) – Credit rating agency S&P Global slashed its global forecasts on Thursday, predicting coronavirus lockdowns would now see the world economy contract 2.4% this year and cause the United States and euro zone to slump 5.2% and 7.3% respectively.

Though the projections were not as dramatic as the 3% global contraction forecast by the International Monetary Fund earlier in the week, S&P’s move is likely to fan worries about further sovereign and corporate rating downgrades.

“The data flow reflecting the economic impact of measures to curb the spread of COVID-19 has gone from bad to worse,” S&P’s top global and regional economists said in a new report.

“We now see global GDP falling 2.4% this year, with the U.S. and euro zone contracting 5.2% and 7.3%, respectively. We expect global growth to rebound to 5.9% in 2021,” they added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest Category Posts