FXStreet notes that the Covid-19 pandemic has had a dramatic impact on economic activity. Economists at Nordea project the world economy to contract sharply by -2% in 2020.

“We expect global growth to be around -2% in 2020 followed by +6% in 2021 in the U-shaped baseline scenario.”

“The positive risk scenario looks much like the baseline U-shaped scenario, but the recovery is faster, like a V-shape. We expect global growth to end around 0% in 2020 and 5% in 2021.”

“Several risks have the potential to make any eventual recovery very gradual and seem more like an L-shape than a U-shape. We expect global growth to end around -6% in 2020 and +5 % in 2021.”