The 2020 year turned out to be rich in events yet rather challenging ones. The coronavirus outbreak caught the whole world off guard knocking down countries with the strongest economies. Even though some countries are showing green shoots of recovery, it is not enough to offset the adverse effect of the pandemic on the global economy. This year has been a trial of strength for the economy of different states. No wonder, their prospects are rather grim.
According to Moody's Investors Service, the GDP of the G20 countries will slump by 4.6% this year. The pandemic remains the thorny issue for the economic recovery as well as uncertainty caused by the virus. These two factors are slowing down the economic revival constraining investments and consumer demand. "Economic data show a quick rebound in goods consumption in a number of advanced economies. However, pandemic fears will continue to hinder a complete recovery," the report states. China seems to be the first country that will get back to normal far quicker than the others do. Economic activity in the country is projected to remain at the same level without any constrictions. The drop in GDP of developed countries will be 6.5%, in developing countries around 1.4%. In China, the decline will total 5.6%.
The Agency's analysts did not revise their forecast for GDP of the US (- 5.7% in 2020 and + 4.5% next year), Germany (-6.7% and +5.4%, respectively) the United Kingdom (-10.1% and +7.1%, respectively).
