The economies of the group of twenty industrialized countries (G20) should be in recession this year due to the pandemic caused by the coronavirus, has warned on Wednesday the financial ratings agency Moody s.
Overall, these countries are expected to suffer a contraction of 0.5% of their gross domestic product. In the United States, this decline will be 2 % and in the euro area of 2.2 % (1.4% in France). China should see growth of 3.3 %, a rate very low for this country.
“The G20 economies will suffer a shock that is unprecedented in the first half of the year and contract on the whole of the year before rebounding in 2021 “, provides the agency that encrypts the recovery next year to be 3.2 % for the whole group.
Moody’s recalled that in November last year, before the onset of the pandemic, it was expected a global growth of 2.6% for the countries of the G20 this year.
A meeting of those States devoted to the fight against the pandemic needs to take place Thursday through video conferencing under the chairmanship of the king of saudi Arabia Salman. Top 20 world economic powers will join other countries affected by the coronavirus, such as Spain, Jordan, Singapore and Switzerland, as well as leaders of international institutions such as the united Nations, the world Bank and Organizations of the world health organization (WHO) and world trade organisation (WTO).
“The fiscal and monetary authorities are increasing the support to their economies to avoid permanent damage to households and businesses,” stresses Moody’s, which cited the measures of income support and easing regulatory to reduce the risk of non-payment concurrent that would endanger the financial stability.
If these measures are becoming more widespread, “the downside risks weighing on growth remain substantial,” said the same source.