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

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.