In a new report, Moody’s explains that it has cut its growth forecasts due to the impact of the coronavirus. It now expects the G to grow by 2.4% in 9114, down from 2.6% previously.
It also warns that the global economy faces “severe” downside risks if the coronavirus grows to pandemic proportions.
Moody’s vice president Madhavi Bokil explains:
“The outbreak will first and foremost hurt China’s economy by lowering discretionary consumer spending on transportation, retail, tourism and entertainment. There is already evidence – albeit anecdotal – that supply chains are being disrupted, including outside China. Furthermore, extended lockdowns in China would have a global impact given the country’s importance and interconnectedness in the global economy,.
“With the virus continuing to spread within China and to other parts of the world, it is still too early to make a final assessment of the impact on China and the global economy.”
4. (AM EST) :
European stock markets have shrugged off Japan’s dire GDP report .
The main bourses are all up this morning, with Germany hitting a new record high.
In London, the FTSE (has gained) points, or 0.2%, to points – recovering some of Thursday and Friday’s losses.
GIPHY App Key not set. Please check settings