Economic Update: Fitch Ratings cuts GDP forecasts again – McKinsey see opportunities for a greener recovery
by Paul Dennis27 May
Fitch Ratings has made further cuts to world GDP forecasts in its latest Global Economic Outlook (GEO).
Brian Coulton, Chief Economist, Fitch Ratings, said: “World GDP is now forecast to fall by 4.6% in 2020 compared to a decline of 3.9% predicted in our late-April GEO.
“This reflects downward revisions to the eurozone and the UK and, most significantly, to emerging markets (EM) excluding China.”
Covid-19 Report — Updated twice a week Understanding the Covid-19 outbreak, the economic impact and implications for specific sectors
Our parent business intelligence company
Fitch now expects Eurozone GDP to fall by 8.2% in 2020 compared to a contraction of 7.0%, and the UK 7.8% this year.
McKinsey has said that the tragedy of Covid-19 does present an opportunity for a greener recovery.
The consultancy said: “Low-carbon recovery could not only initiate the significant emissions reductions needed to halt climate change but also create more jobs and economic growth than a high-carbon recovery would.
Will a global recession spell bad news for the mining industry?
- Yes, stagnant economies require fewer minerals
- No, construction will be more vital than ever
- Both, some commodities will suffer while others suceed
Loading ...
“Our analysis of stimulus options for a European country suggests that mobilizing €75 billion to €150 billion of capital could yield €180 billion to €350 billion of gross value added, generate up to three million new jobs, and enable a carbon-emissions reduction of 15 to 30% by 2030.
Nomura predicted that Covid-19 is to derail Asia’s GDP growth to -0.5% y-o-y in 2020, from 5.3% in 2019. 8 out of 10 economies will contract in 2020 in the region.
The investment bank also said: “We expect China’s GDP growth to remain negative at -0.5% in Q2 and Beijing to roll out a large stimulus package soon.”