Moody’s: US real GDP to grow by 1.5% in 2020 vs. 1.7% previous due to coronavirus

Moody’s Investor Service, said in its latest report released on Friday, the US real GDP is now expected to grow by 1.5% in 2020, down from the previous estimate of 1.7%.

Key takeaways

Coronavirus will hurt economic growth in many countries through first half of 2020.

Revised 2020 baseline growth forecasts for all G-20 economies as they expect supply & demand shocks from coronavirus to materially slow economic activity.

Longer coronavirus outbreak affects economic activity, the demand shock will dominate and lead to recessionary dynamics.

Lowered 2020 forecast for China's growth to 4.8% from previous estimate of 5.2%.

Global spread of coronavirus is resulting in simultaneous supply and demand shocks.

• EUR/USD looks to settle a dramatic week around 1.1300
• Fed’s Rosengren: Fed needs wider QE mandate to deal with economic downturns