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Niti Shenoi made post

How bad is the impact of COVID-19 likely to be on the world economy?

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Archita Jajjoo answered.
4 weeks ago

Estimates on this subject but there has been recently been a fairly comprehensive study done by Dun & Bradstreet. It is now estimated that the global economy may contract by -5.2% for the calendar year 2020. Even the Asia Pacific region is expected to see the lag effect of this COVID-19 syndrome well through the September and December quarters.

This was revealed in the Country Risk report brought out by Dun & Bradstreet. The report also estimates that the world economy will not be able to reach pre-pandemic levels of growth before the second quarter of 2022. The -5.2% decline will be the sharpest since World War II and much steeper than the -1.7% contraction seen in 2009 post Lehman crisis.

On the topic of largely irrational valuations, D&B has pointed out that due to massive liquidity infusion, the stock prices may not reflect the fundamentals of the global economy. D&B estimates that social distancing could put limits to growth in 2021 even as unwillingness among companies to commit long term investments may be a handicap.