The economies of most countries of the world will not be back on track before 2022, Moody’s stated reason

Moody’s Investors Service said on Thursday that the deterioration in credit due to Corona will be a short time only. But in terms of economic activity, most economies will not reach the pre-epidemic level by 2022. The World Health Organization (WHO) declared Corona as an epidemic on March 11 last year. Since then, epidemics have shocked global economies throughout the year. The decline in debt and defaults in payments have increased.

Moody’s said in a global report on the corona virus that the debt credit challenges arising from the epidemic are substantial, but are likely to be short-lived. The risk is greater for those sectors like tourism, aviation, whose general activities are also banned.

Moody’s said that by 2022 most economies will not be able to return to the level of activity before the epidemic. According to Moody’s, the atmosphere of slow global activity and uncertainty may persist for some time. After the epidemic subsides, policy measures will continue to support economic activity and financial markets.

Moody’s said that governments would continue to support economic activity for a long time, with Moody’s predicting that the prevalence of epidemics and the number of infections would gradually decrease this year, as vaccination was increasing. This will allow governments to gradually reduce the restrictions related to lockdown.

(This news has not been edited by the NDTV team. It has been published directly from the Syndicate feed.)