The global economy is already in a recession as the hit to economic activity fro...
BENGALURU - The global economy is already in a recession as the hit to economic activity from the coronavirus pandemic has become more widespread, according to economists polled by Reuters amid a raft of central bank stimulus actions this week.
More than three-quarters of economists based in the Americas and Europe polled this week, 31 of 41, said the current global economic expansion had already ended, in response to a question about whether the global economy was already in recession. The worst-case views on growth taken just weeks ago in some cases have already into the central scenario for private sector economists in Reuters polls.
“As cases of coronavirus spiral upward, disruptions to the global economy are increasing. We have cut our global GDP growth forecast to 1.25% for the year - less severe than the deep recessions of 1981-82 and 2008-09, but worse than the mild recessions of 1991 and 2001,” noted Goldman Sachs’ economics research team.
“We’re still getting our heads wrapped around that. We think it’s quite likely that the U.S. has a small technical recession this year.”
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