Global economic growth will fall by 4.4% in 2020, according to
international ratings agency Fitch Ratings, a slight upward revision
from the 4.6% decline it projected in a previous report in June.
A slight recovery was seen after the peak period of the pandemic in March and April “but we expect the pace of expansion to moderate soon,” the agency said in a statement late on Monday.
Brian Coulton, a chief economist at the agency, said China’s economy has regained its pre-pandemic level and some European countries have exceeded February levels, but there is still doubt over a V-shaped recovery.
“Unemployment shocks lie ahead in Europe, firms are cutting capital expenditures, and social distancing continues to directly constrain private-sector spending,” he said.
The agency revised its GDP expectation target for the US from -5.6% to -4.6% and from 1.2% to 2.7% for China.
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Global GDP to fall by 4.4%, not 4.6%, in 2020: Fitch
A slight recovery was seen after the peak period of the pandemic in March and April “but we expect the pace of expansion to moderate soon,” the agency said in a statement late on Monday.
Brian Coulton, a chief economist at the agency, said China’s economy has regained its pre-pandemic level and some European countries have exceeded February levels, but there is still doubt over a V-shaped recovery.
“Unemployment shocks lie ahead in Europe, firms are cutting capital expenditures, and social distancing continues to directly constrain private-sector spending,” he said.
The agency revised its GDP expectation target for the US from -5.6% to -4.6% and from 1.2% to 2.7% for China.
Read more at:
Global GDP to fall by 4.4%, not 4.6%, in 2020: Fitch
