Coronavirus Causing Major Economic Shock to the Global Economy: DIW Economic Outlook

DIW Weekly Report 12 / 2020, S. 180-182

Claus Michelsen, Guido Baldi, Geraldine Dany-Knedlik, Hella Engerer, Stefan Gebauer, Malte Rieth

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Abstract

The ongoing corona pandemic is causing a major shock to the global economy. In the coming months, many countries are expected to suffer severe economic downturns. Sealing off entire regions disrupts supply chains, resulting in production losses and falls in consumption. The global economy is expected to grow by as little as 2.5 percent this year instead of by the 3.7 percent forecasted previously. If the situation normalizes again in the course of the year, however, 3.5 percent growth will, in all likelihood, be achieved in the next year.

Geraldine Dany-Knedlik

Research Associate in the Macroeconomics Department

Stefan Gebauer

Research Associate in the Forecasting and Economic Policy Department

Claus Michelsen

Head of Department in the Forecasting and Economic Policy Department

Malte Rieth

Research Associate in the Macroeconomics Department

Hella Engerer

Research Associate in the Energy, Transportation, Environment Department

Topics: Business cycles



JEL-Classification: E32;E66;F01
Keywords: Business cycle forecast, ecoomic outlook
DOI:
https://doi.org/10.18723/diw_dwr:2020-12-2