The coronavirus pandemic, which has not loosened its grip yet, forces experts to revise short- and long-term forecasts for the global economy. Analysts at Goldman Sachs Group Inc. have drawn a conclusion that the world is on the verge of drastic changes.

They predict that the fallout from the COVID-19 pandemic will be the least painful to US markets. Experts at Goldman Sachs think that American markets will show the strongest resilience to the profound economic crisis.

The pundits say that the global economy is going to lick its wounds in the first half of 2020. Then, it will enter the phase of a gradual recovery. Zach Pandl, co-head of global foreign exchange and electronic markets at Goldman Sachs, foresees bright prospects for global stocks. The expert believes that the global economy is unlikely to plumb the depths of recession because there are solid fundamentals for regaining momentum.

To prove his words, Zach Pandl reminds traders that almost all global stock indexes have won back most of their losses within just one month after a historic slump in early March. For instance, the American S&P 500 advanced 29% from March 2020. The survey by Goldman Sachs rests on the consensus of GDP expectations. Earlier, the median forecast suggested that the US economy could shrink 4% in 2020, but its gross domestic product could expand 4% next year.

Nevertheless, some reputable think tanks do not share the optimistic outlook of Goldman Sachs. For example, currency strategists at UBS Group AG make opposite forecasts. They warn investors of a protracted recovery in the global economy. Besides, the coronavirus-driven crisis will cast a shadow over the fundamental picture in the long run.

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