Moody’s Investor Service said on Thursday that most of the world’s economies would not return to pre-covid activity before next year. But at the same time, they say, the recession in the debt market caused by Covid-19 will be short-lived.
Exactly one year ago, on March 11 last year, the World Health Organization (WHO) declared Covid-19 as a global epidemic. Since then, the corona virus has disrupted the world economy. As a result, it is difficult to obtain a loan and the unpaid bonds have suddenly increased greatly.
Moody’s said in their global report on coronavirus, the obstacles to getting a loan for Covid-19 are significant, but the slowdown in the credit market is likely to be short-lived.
Moody’s said most economies would not return to pre-covid activity levels before 2022, adding that it expects the global economy to turn sluggish and uneven and that uncertainty in the larger economic context will be much higher than usual.
According to the report, policy measures will continue to support economic activities and financial markets after the outbreak of the epidemic. According to Moody’s, this support will last for several years in some cases.
The agency hopes that as the number of people vaccinated increases, the incidence of corona infections will decrease this year. As a result, the governments of different countries will gradually relax the lockdown system. However, in areas where vaccination progress is slow and infections are occurring locally, there is a risk of Covid-19 staying for some more time.
Moody’s said, in addition, there are risks in trying to normalize the situation as new mutations accelerate transmission. That’s why instead of completely eradicating the virus, we hope to learn to survive with it where the rate of infection will be lower.
According to the rating agency, the impact of the Corona epidemic on debt, have a set of rating measures and They hope there will be no need for a further overall review of credit ratings unless there is a major blow to the global economy this year.