Coronavirus sends global economy in recession – NBF

There is little doubt the 2020 coronavirus shock will have lasting impacts on the world economy. Economists at the National Bank of Canada expect the world GDP to shrink 4% in 2020.

Key quotes

“Social distancing measures, while necessary to limit the rate of infections and fatalities, will also cap the expected rebound of growth in the second half of 2020 and next year.”

“We expect world real GDP to contract 4% this year, but that assumes further downside risks do not materialize.”

“The year 2021 will see some governments, particularly in advanced economies, pull back some of the extraordinary fiscal stimulus that is being deployed this year, further limiting the extent of the recovery.”