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Goldman Sachs Research economists have cut their 2020 global GDP growth forecast to 1.25%, implying a recession worse than the one seen in 1991 and 2001 and less severe than in 1981-82 and 2008-09.

“As cases of the coronavirus spiral upward, disruptions to the global economy are increasing,” economists noted while revising growth forecasts lower. 

The investment bank now sees the US economy contracting by 5% in the second quarter and has slashed China’s first-quarter estimate to -9% year-on-year from +2.5% previously.