Rating agency S&P Global slashes global forecasts [Reuters]
S&P Global Inc. (SPGI)
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Source: Reuters
Rating agency S&P Global slashes global forecasts 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.
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