Coronavirus News Asia

Markets cool to stimulus pledges as recession looms

Asian markets struggled on Wednesday despite stimulus spending plans announced by various governments as the threat from a global recession loomed.

S&P Global has forecast a global recession this year and their economists estimate world GDP growth in 2020 will be only 1.0%-1.5%, with risks remaining firmly on the downside.

“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” said S&P Global’s Chief Economist Paul Gruenwald. “Europe and the US are following a similar path, as increasing restrictions on person-to-person contacts presage a demand collapse that will take activity sharply lower in the second quarter before a recovery begins later in the year.”

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