Growth below 2% is classified as a global recession, per IHS Markit.
Nariman Behravesh, Ph.D., and Sara L. Johnson, CBE, Chief Economist, IHS Markit and Executive Director – Global Economics, IHS Markit03.19.20
The United States, Europe, and Japan are headed for recession.
The IHS Markit forecast for world real GDP growth in 2020 has been revised down to 0.7% in response to the spread of the virus.
Growth below 2% is classified as a global recession.
The number of active world cases is assumed to top out by the third quarter.
Nevertheless, the result will be a U-shaped rather than V-shaped cycle, as a sharp reduction in near-term growth is followed by a slow recovery.
Forecast risks are overwhelmingly on the downside and depend crucially on how governments respond.
Central banks have already taken emergency actions, but the fiscal response is more uncertain.
The recent sharp drop in oil prices will help energy consumers and hurt energy producers. The net effect on global growth is likely to be negative, but small.
The US: Recession will start in the second quarter
Incoming data point to solid growth at the start of 2020. Fear and financial stress stemming from the spread of the COVID-
Continue reading this story and get 24/7 access to The Independent Global Source for the Flexible and Printed Electronics Industry. for FREE
Stay ahead of the fast growing field of flexible and printed electronics, an emerging industry that promises to revolutionize the methods in which electronic components and systems are manufactured. Flexible and printed electronics covers smart packaging and labels, sensors and wearables, solar cells, displays and lighting, batteries, medical devices, military equipment, and much more.
Already a subscriber? Login