Fitch Is Waiting For An Unprecedented Global Recession

Fitch Is Waiting For An Unprecedented Global Recession

International credit rating agency Fitch underlined that a global recession that has never been experienced due to the coronavirus outbreak is expected, and a 3.9 percent contraction is expected in the global economy this year. In the Global Economic Outlook report, which was updated for the third time by Fitch Ratings, it was stated that a downward revision in global economic growth forecasts was accompanied by the extension of measures applied due to the coronavirus outbreak and incoming data. The report includes the global economy's projection of 3.9 percent contraction in 2020, and a recession that has never been experienced before. In a previous report released on April 2, Fitch announced that the global economy will contract by 1.9 percent this year. 7% PERCENTAGE OF COLLECTION FOR THE EURO REGION According to the report, it was stated that the highest downward revisions are in the Eurozone economy, while the regional economy is expected to contract by 7 percent this year, while the growth of 4.3 percent is expected in 2021. In the report, which is expected to decrease by 6.2 percent in the economy of Germany, which is one of the leading economies in Europe, in Italy, which is one of the countries where the coronavirus epidemic showed the most impact, 8 percent of the economy in 2020, 7 percent of the French economy and 7 percent of the Spanish economy. It was predicted that it would experience 7.5 shrinkages. According to the report, it is estimated that there will be a 6.3 percent contraction in the British economy this year. 0.7 PERCENT GROWTH IS EXPECTED FOR THE CHINESE ECONOMY According to the report, 0.7 percent growth was estimated in the Chinese economy this year, while the growth of 7.9 percent was estimated in 2021. According to Fitch's report, a 5 percent contraction is expected in the Japanese economy this year, while it is estimated that there will be a 3.2 percent growth in 2021. The report, which is said to have revised downward revisions in the economies of developing countries, said that the decline in commodity prices, capital outflows, and more limited policy flexibility showed the economic effects of the epidemic more frequently. According to the report, while the economies of developing countries are expected to shrink by 0.5 percent this year, it is estimated that there will be a growth rate of 6.4 percent in 2021. According to the report also included estimates relating to Turkey's economy this year will be the country's economy shrinking 2 percent, while in 2021 is expected to grow 4.9 percent.