New Delhi, March 23 (TIWN) The rapid spread of coronavirus in the last two weeks causing widespread business closures and unprecedented restrictions on social interactions will result in a permanent hit to global economic activity this year, Moody's Investors Service has said in latest global macroeconomic report.

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 levels that last occurred during the global financial crisis, said Moody's. "And fear about the huge hit to business activity is contributing to extreme risk-off sentiment, resulting in the repricing of equities, commodities, bonds and currencies."