Covid-19 to 'permanently' hit global economic activity this year: Moody's

Financial market volatility is at levels that last occurred during the global financial crisis, said Moody's

The rapid spread of the coronavirus in the last two weeks, widespread business closures and unprecedented restrictions on social interactions will result in a permanent hit to global economic activity this year, according to Moody's Investors Service.

A sharp contraction of the global economy, at least in the second quarter, appears imminent, it said in its latest special series 'Credit Risks in Turbulent Times.'

Uncertainty will remain for at least several months as to how long it will take to contain the spread of the virus and how businesses and households will cope with the resulting financial losses.

Financial market volatility is at