A range of banks and financial institutions have offered their worst-case scenarios for 2020, as the spread of the new coronavirus impacts the global economy and roils financial markets.
The global uptick in gross domestic product could be as low as 1% this year, the Institute for International Finance said last week, and that prediction was even before an oil price crash on Monday sent stocks into another tailspin.The number of people infected with the coronavirus hasworldwide. The virus that started in China late last year is having consequences for all major economies with flight cancellations, panic buying and strict quarantine measures in some cases.
The Organization for Economic Cooperation and Development , the ratings agency Moody's and other financial institutions have also downgraded their global growth forecasts over the last few days. The OECD estimated that global GDP will be 2.4% this year, a 0.5% percentage point cut from a forecast done in November. Moody's revised down its GDP expectations for the global economy Friday to 2.1%, from 2.4%.
More people are working from home as the virus spreads to new countries and governments issue new advice. Some people in Europe are taking less trips on public transport and avoiding public spaces, such as museums, restaurants and movie theaters.
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