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According to the agency’s latest report, world GDP will drop 3.9% in 2020.
Risk rating agency Fitch predicted that the international economy will face “a recession of unprecedented depth“because of the coronavirus pandemic, according to his latest report, published on April 22.
“Fitch Ratings now expects that world GDP will contract by a 3.9% in 2020, a recession of unprecedented depth in the post-war period, ” the publication reads, adding that it will be twice as strong as during the world crisis in 2009.
In detail, the agency predicted that eurozone GDP will fall 7%, while in the US and the United Kingdom would decrease by 5.6% and 6.3%, respectively. “The biggest downward revisions are in the eurozone, where measures to stop the spread of the coronavirus have already taken a heavy toll on activity in the first quarter of 2020,” it said in a statement.
“No country or region has avoided the economic impact devastating global pandemic, “states the report.
“A much deeper recession than the Great Recession”
Previously, David Malpass, President of the World Bank, argued last week that the coronavirus pandemic will cause “a much deeper global recession“that the financial crisis of 2008 and that could destroy the recent progress made by poor countries.
“Our estimates suggest a much deeper global recession than the Great Recession, given the decrease in production, investment, employment and trade,” warned the head of the institution.
