Morgan Stanley warned investors on Tuesday that the coronavirus pandemic is fundamentally disrupting the world's economy.
"Global recession in 2020 is now our base case," Morgan Stanley chief economist Chetan Ahya wrote in a note. "With Covid-19 spreading in Europe and the US after hitting Asia, the disruptions and dislocations in the economy and markets will trigger a [year over year] contraction in global growth in [the first half of 2020]."
Morgan Stanley believes the U.S. government is undertaking a "strong monetary and fiscal policy response" that "will help revive global growth" in the third quarter of this year. But, overall, Ahya said global economic growth will slow to 0.9% this year, "the lowest since the global financial crisis."
"This time will be worse than the global recession of 2001. While the policy response will provide downside protection, the underlying damage from both Covid-19's impact and tighter financial conditions will deliver a material shock to the global economy," Ahya said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jeffrey Dean Morgan & Hilarie Burton Share Sweet Birthday Tributes to 'Most Spectacular' Son Gus'The best decade of our lives because of you,' Jeffrey Dean Morgan said of his 10-year-old son
Read more »
Piers Morgan blocks Alan Sugar on Twitter as they lock horns over coronavirusPiers Morgan has blocked his frenemy Alan Sugar after they bickered about the coronavirus pandemic on Twitter
Read more »
Piers Morgan mocks Susanna Reid for pulling coronavirus sickie to avoid himPiers Morgan teased TV wife Susanna Reid over calling in sick as he jested coronavirus was just an 'excuse' to avoid working together
Read more »
Piers Morgan urged to self-isolate after coming into contact with Susanna ReidPiers' best frenemy Lord Sugar urged him to self-isolate after co-host Susanna Reid confined herself to her home amid coronavirus
Read more »
'A matter of weeks and months': Larry Kudlow predicts short-lived coronavirus slowdownBut a former White House economic adviser says chances of a global recession are "close to 100 percent"
Read more »