Fitch Ratings, in its newest quarterly “Global Economic Outlook” (GEO), announced today (March 20) said that the coronavirus pressure is crushing global GDP growth.
Fitch said it demands global growth to fall to 1.3% in 2020 from 2.7% in 2019, which would be lower than global downturns in the early 1990s and 2001.
The delayed impact of supply-chain disruptions and lower Chinese trade on the rest of the world will continue to be felt profoundly for some time, particularly in the residue of Asia and the eurozone.
The obstructions to economic activity seen in China – and now in Italy – are on a range and speed, that is not witnessed, except for periods of military conflict, natural disasters or financial pressures.
According to the report, although improvement is expected from China by the second portion of this year, Chinese growth is required to fall just 3.7% for the year as a whole, down from 6.1% in 2019.
Further, Fitch Ratings forecasted Italian GDP to fall by 2% this year and Spanish GDP by approximately 1%.
The baseline outlook for US growth is 1% in 2020 compared with a pre-virus probability of 2% and GDP is expected to fall by 0.5% during the second quarter of this year.