On Thursday, Bank of America cut its world growth forecast to the lowest level since the peak of the global financial crisis in 2009.
“We have cut our 2020 global growth forecast to 2.8% (from 3.2%). This would be the lowest reading since 2009,” wrote the bank’s economists in a note while adding that it would be the first time since the crisis that it expect global economic growth to be under 3%.
They also went on to note, extended disruptions in China are likely to hurt global supply chains.
Weak tourist flows are also likely to add to headwinds in Asia.
Limited outbreaks of the coronavirus, such as the one in Italy, are possible in many countries, leading to more quarantines and will weigh on confidence.
“Therefore, we have cut our forecasts across the board,” they said.
They have also predicted China’s GDP to grow at 5.2%, down from 5.6%.
“We project just 2.2% growth outside China, also the lowest rate since 2009.”