Morgan Stanley and Goldman Sachs Inc. have declared that the COVID-19 pandemic has triggered a global recession, with the debate that focuses on how long it will last and how deep this recession will be.
President Donald Trump has conceded that U.S. slump alone is expected to be a “bad one”. After this statement was released, economists threw away their forecasts that the world can avoid going into recession for the first time since the financial crisis.
Morgan Stanley’s team has stated that a worldwide recession is now its “base case” with growth expected to fall to 0.9% this year, while at Goldman Sachs, Jan Hatzius and colleagues predict a weakening of growth to 1.25%.
The expected outcome of this recession is expected to be worse if the virus lasts longer than anticipated, given factories, schools, restaurants, and shops being closed around the world.