As the coronavirus crisis severely impacts the global economy, a report by Moody’s Investor Service said that the economies of G20 countries may witness a contraction in the first half of 2020.
The forecast gains significance as G20 comprises of the world’s largest advanced and emerging economies representing over two-third of the world population. India also is a member of the group. The other members of the G20 are the US, the United Kingdom, Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey and the European Union. The report noted that the economic effect of the pandemic includes impact on demand, supply disruption and shock to the financial markets.
The Moody’s report said: “The global economy will experience an unprecedented shock in the first half of 2020.”
