S&P: Downward GDP revision for developing nations reflect pandemic situation

The agency has cut its growth forecasts for emerging markets, predicting a 4.7% slump on average this year due to the coronavirus.

FILE: The S&P Global logo is seen outside a building in Washington, DC, on 25 July 2019. Picture: AFP

JOHANNESBURG - Ratings agency S&P Global has warned that all countries will be left with permanent scars after the COVID-19 pandemic.

The agency has cut its growth forecasts for emerging markets, predicting a 4.7% slump on average this year due to the coronavirus.

This is compared to its last set of figures in April when the agency predicted a 1.8% contraction for emerging markets, which includes South Africa.

S&P global said that the downward GDP revisions for developing nations mostly reflected the ever-worsening situation for many countries.

Its predicted contraction as large as 11% for India, 6%-7% or South Africa and most of Latin America and 3%-4% for most of emerging Europe.

It said that foreign trade had been largely affected but while it predicted the average emerging market GDP to decline by 4.7% this year, it's expected to bounce back by 5.9% next year.

S&P Global said that risks remained mostly on the downside and were tied to pandemic developments.

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