The coronavirus pandemic could drive a 'deep recession' in the global economy this year and scar the economy through 2021, according to Moody's Investors Service.
Advanced economies within the G20 group of the world’s biggest economies are expected to contract by 5.8 per cent this year as a result of the pandemic. Even a gradual recovery in 2021 is not expected to revive their gross domestic product to pre-pandemic levels, the agency said.
Meanwhile, emerging economies within the G20 fold, with the exception of China, are expected to contract by 3.5 per cent from a growth forecast of 3.2 per cent prior to the outbreak. China, the world's second-largest economy, is forecast to grow by 1 per cent this year.
"The contraction in economic activity in the second quarter will be severe and the overall recovery in the second half of the year will be gradual," said Moody's vice president Madhavi Bokil.
"Recovery is also likely to be uneven across sectors as fear of infection will likely alter consumer behaviour even after restrictions on business activity and mobility are lifted," she added.
The global economy is set to experience its worst recession since the 1930s, with growth expected to contract 3 per cent in 2020, according to the International Monetary Fund. The Washington-based lender's projection was a sharp revision from the 3.3 per cent expansion it had previously forecast.
The IMF, however, has a more optimistic view of China, where the pandemic began. The country's growth is expected to decelerate to 1.2 per cent in 2020 after an expansion of 6.1 per in 2019 - its slowest pace in nearly three decades.
Moody's also predicted that consumption in sectors that involve "a high degree of human contact" such as dining out, visiting movie theatres, flying and mass transit will take a while to normalise.
"Many businesses will struggle to stay afloat in these conditions, and eventually some will close regardless of policy support to the economy," said Ms Bokil.
The agency also expects oil, which has lost 70 per cent of its value since its most recent peak in January, to remain low. Brent, the most widely traded crude commodity benchmark is expected to average $35 per barrel this year, while the North American West Texas Intermediate benchmark is expected to move up to $30 per barrel.
Moody's expects a revival in demand for oil in the second half of the year due to the easing of social distancing measures.
The agency expects both Brent and WTI to pick up to $45 and $40 per barrel in 2021, due to "a gradual improvement in economic activity".
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
The low down
Producers: Uniglobe Entertainment & Vision Films
Director: Namrata Singh Gujral
Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark
Rating: 2/5
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
UAE SQUAD
Mohammed Naveed (captain), Mohamed Usman (vice captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
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Aston martin DBX specs
Engine: 4.0-litre twin-turbo V8
Transmission: nine-speed automatic
Power: 542bhp
Torque: 700Nm
Top speed: 291kph
Price: Dh848,000
On sale: Q2, 2020
WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
