Bank of America Predicts the Worst Results of the Year since 2009
OREANDA-NEWS. Business Insider, citing experts from Bank of America, writes that for the global economy, the year 2020 will be the worst since the end of the last global economic crisis in 2009.
The world economic growth rate will drop by the end of the year to 2.8 %, although over the past decade the global economy has been growing steadily at a rate exceeding 3 %. One of the main reasons is the slowdown in the Chinese economy due to the coronavirus epidemic. “Growth momentum was soft even before the coronavirus shock,” Aditya Bhave, the economist at Bank of America, said. However, China’s aggressive quarantine measures indicate a very weak first quarter for the country, he added.Along with the spread of infection, the growth of the global economy will be negatively affected by the US-China trade war and the uncertainty surrounding the upcoming US presidential election. Nevertheless, according to Bank of America’s analysts, there is no question of recession or stagnation in the global economy.