The European Commission's forecast for the global economic downturn worsened

The European Commission’s forecast for the global economic downturn worsened

The economic contraction in 2020 will be more than expected. Expectations of its recovery in 2021 have also decreased.

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Due to the coronavirus pandemic in 2020, the global economy will fall by 3.8%. This forecast was made by the European Commission on Thursday, November 5.

At the same time, in the spring forecast for the development of the world economy, the European Commission expected a decline of 2.9% in 2020.

In addition, the subsequent economic recovery in 2021 will deteriorate to 4.7%, although the previous forecast indicated 5%.

At the same time, the forecast for a decline in US GDP in 2020 has been improved to 4.6% (6.5% was expected in the spring), but expectations for a recovery in 2021 have been reduced to 3.7% (in the spring it was 4.9%).

Finally, in China, the EC significantly improved its growth expectations in 2020, despite the pandemic, by 2.1% (in the spring forecast – 1%), in 2021 – 7.3% (in the spring forecast – 7.8%).

Recall that earlier investment in the world fell by half due to COVID. The largest decline was observed in developed countries, where FDI fell by 75% to $ 98 billion. FDI inflows to developing countries fell by 16%.

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