Rating agency S&P Global slashes global forecasts

LONDON (Reuters) - Credit rating agency S&P Global slashed its global forecasts on Thursday, predicting coronavirus lockdowns would now see the world economy contract 2.4% this year and cause the United States and euro zone to slump 5.2% and 7.3% respectively.

Though the projections were not as dramatic as the 3% global contraction forecast by the International Monetary Fund earlier in the week, S&P's move is likely to fan worries about further sovereign and corporate rating downgrades.

"The data flow reflecting the economic impact of measures to curb the spread of COVID-19 has gone from bad to worse," S&P's top global and regional economists said in a new report.

"We now see global GDP falling 2.4% this year, with the U.S. and euro zone contracting 5.2% and 7.3%, respectively. We expect global growth to rebound to 5.9% in 2021," they added.

(Reporting by Marc Jones, editing by Huw Jones)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Premarket movers: Oracle surges on AI growth, ACV auctions jumps on $1.9B deal
• Kennedy Center on brink of bankruptcy, could close as early as Tuesday, Washington Post reports
• Investors pull money from equity funds as rising oil prices fuel inflation fears