A Reuter’s study reported on Friday that the pandemic-driven global economic downturn will record its sharpest fall this year. Meanwhile, a U-shaped economic recovery is also seen to take place based on the analysis of economists across the globe.
A group of over 500 economists who took part in Reuter’s poll said that most of the major economies were experiencing a severe economic decline. Moreover, more than 55% of economists predicted that major economies are en route to a U-shaped recovery.
Thirty-one of 155 economists are expecting a V-shaped recovery path while 24 analysts reported a checkmark type of recovery. Some other reported recovery styles included the L-shape and the W-shape.
Economic damage was also seen doubling with a 2% shrink versus a 1.2% contraction reported three weeks ago. The new contraction prediction rate was matched with a growth rate forecast ranging between +0.6% – -6.0%.
“The global economy is collapsing at a pace not seen since World War Two,” senior global economist Michael Hanson stated.