Daily Management Review

Moody's downgrades global car sales forecast for 2020 to 20% decline


The international rating agency Moody's Investors Service (Moody's) has worsened its forecast for car sales in the world in 2020 to fall by 20% instead of the previous March forecast of 14% amid a coronavirus pandemic, the agency said in a study.

RL GNZLZ via flickr
RL GNZLZ via flickr
"The rating agency now expects that car sales in the world will fall by 20% in 2020, which is worse than the previous forecast of a decrease of 14%, as the economic impact of coronavirus is worsening," the report reads. In March, the forecast was sharply worsened with a 2.5% decline in sales.

The forecast for sales in Europe has worsened to a decrease of 30% for the current year from 21%, in the US, sales of cars are expected to fall by 25% instead of the previously expected 15%. At the same time, the indicator for China has been preserved - the agency still forecasts a decrease in the indicator in China by 10% this year, as demand begins to return to normal after a sharp drop in the first quarter.

In 2021, sales will rise by 11.5% due to the projected GDP growth of the G20 countries next year, the opinion of Moody's senior vice president Falk Frey is quoted in the message.

source: moodys.com