OREANDA-NEWS. The GDP of developed countries in the second quarter may be reduced by 35% compared with the first three months of this year due to the spread of coronavirus. This is stated in the report of the chief economist of the American investment bank Goldman Sachs Ian Hattius.

According to him, this recession will be four times higher than the previous record rate of GDP decline recorded in 2008 at the height of the global financial crisis. Hattius noted that it is difficult to predict how quickly economies recover from this shock, since it is not known how soon restrictions on the activities of enterprises in various countries introduced due to the coronavirus pandemic will be lifted.

"The decrease in the number of new cases of coronavirus infection is a direct consequence of measures to social distance and a drop in economic activity, so the situation can change rapidly if people return to work", the economist said.

At the same time, he emphasized that Europe’s response to the current crisis “should be broader” and include “reducing the fiscal burden and a greater commitment to preserving the eurozone”. Hattius also added that "developing countries will need extra help from wealthy nations" to deal with the crisis.