Economic Update: Global economy expected to shrink by 1.9% – growth still predicted for China and India

20th May 2020 (Last Updated May 20th, 2020 14:19)

20 May

The global economy is now expected to shrink by 1.9% in 2020, according to experts from GlobalData.

Western Europe and the US are still expected to bear the brunt, with Italy’s GDP forecast to contract by 10% over the year.

France’s GDP is predicted to shrink by 8.6%, the UK’s by 8.2%, Spain’s by 7.9% and Germany’s by 6.6%.

Those forecasts are slightly worse than GlobalData was forecasting a week ago.

The US’s estimate has been revised upwards, however, with the country seeing a steady decline in Covid-19 cases and deaths.

GlobalData now predicts the US economy will shrink by 5.0% across 2020 – slightly less than the 5.3% predicted a week ago.

Latin American countries, where the numbers of Covid-19 cases are now surging, are also expecting an economic downturn. Mexico’s economy is expected to contract by 7.0% in 2020, Peru’s by 4.1% and Brazil’s by 4.0%.

China and India are among the few countries predicted to still see economic growth this year.

Covid-19 macroeconomic dashboard