Because of the epidemic of the coronavirus closed factories, restaurants, canceled flights and imposed travel restrictions.
The index of business activity in the manufacturing sector and the service sector in Eurozone fell to the lowest level since 1998, and a similar dynamics is observed in other developed countries.
“Short-term economic prospects look intimidating,” says Stephen king, economic adviser to HSBC Holdings Plc.
IMF chief Kristalina Georgieva said that the global economy faces a downturn, the scale commensurate with that which was observed during the global financial crisis.
Investor concerns resulted in a sell-off in the markets. The Stoxx Europe 600 has lost more than 30% over the last month and the S&038;P 500 reached the lowest level since 2016.
Morgan Stanley claims that the US GDP may slow the growth of 30% per year in the second quarter, and unemployment will rise to 12.8%.
Bloomberg Economics expect the global economy will shrink by 2% in annual terms in the first half of the year. Goldman Sachs Group Inc believes that the region’s economy will shrink by 11% in the quarter to June.
The world’s Central banks have carried out 40 cuts last week. The fed announced the beginning of the program of redemption of bonds open end, and the ECB and Bank of England also expanded the asset-purchase program.