Oxford Economics "Global Economic Growth Rate Revised Down from 2.5% to 2.0% This Year"

[Asia Economy Reporter Jeong Hyunjin] Oxford Economics, a British economic analysis institute, announced on the 9th (local time) that it has downgraded its global economic growth forecast for this year from the previous 2.5% to 2.0%, considering the spread of the novel coronavirus infection (COVID-19).

Oxford Economics explained, "We have lowered the global gross domestic product (GDP) forecast by 0.5 percentage points from the figure announced last January," adding, "The return to normal business activities in China is slower than expected, and the impact of the COVID-19 spread is becoming more widespread." However, it added that it does not yet appear that a global economic recession is inevitable due to the COVID-19 impact.

Oxford Economics stated, "The situation is fluid, and the most critical uncertainty is whether households and businesses can return to normal daily levels," and expected that economic growth would return in the second quarter due to China.

Additionally, the institute predicted that if the price of West Texas Intermediate (WTI) crude oil remains at around $30 per barrel this year, the annual economic growth rate of the United States will decrease by 0.2 percentage points. Oxford Economics explained, "If oil prices fall, energy-related investments will decrease, negatively affecting the U.S. economy."

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