The Organization of the Petroleum Exporting Countries (OPEC) expects the global economy to contract 4.0% in 2020, revising down the estimate from the previous month by 0.3 percentage points, APA reports citing Teletrader.
In its Monthly Oil Market Report for August 2020 released on Wednesday, OPEC again attributed the decline to the global COVID-19 pandemic. However, in 2021, the global GDP is projected to grow by 4.7%.
The United States GDP is expected to drop by 5.3% this year, followed by a 4.1% growth in 2021. OPEC sees the Eurozone economic activity declining by 8% in 2020, but accelerating 4.3% for the next year.
Japan's 2020 economy is estimated to shrink by 5.1% and China's GDP is still seen as growing by 1.8% this year. The forecasts for India's, Brazil's and Russia's economy have all been revised down again for 2020, but all three are expected to recover in 2021, OPEC noted.