Standard P Global, a credit rating agency, downgraded its global economic forecast on Thursday that the blockade to curb the spread of novel coronavirus will cause the world economy to contract by 2.4% in 2020, 5.2% in the United States and 7.3% in the euro zone.

Although the forecast is less than the 3 per cent contraction forecast by the International Monetary Fund (IMF) earlier this week, it could raise concerns about further downgrades of sovereignty and corporate ratings.

S&P Global Inc. and the region's top economists said in the latest report: "the forecast data reflect that the economic impact of measures to curb novel coronavirus's spread is getting worse and worse."

"We are now seeing a 2.4 per cent decline in global GDP this year, 5.2 per cent in the US and 7.3 per cent in the eurozone," the report said. We expect global economic growth to rebound to 5.9% by 2021. "