This April 16, 2020 photo shows little traffic on 125th Street in the Harlem neighborhood of New York during the coronavirus pandemic. (MARK LENNIHAN / AP)

LONDON - Credit rating agency S&P Global slashed its global forecasts on Thursday, predicting coronavirus lockdowns would now see the world economy contract 2.4 percent this year and cause the United States and euro zone to slump 5.2 percent and 7.3 percent respectively.

Though the projections were not as dramatic as the 3 percent global contraction forecast by the International Monetary Fund earlier in the week, S&P’s move is likely to fan worries about further sovereign and corporate rating downgrades.

ALSO READ: IMF : Pandemic to bring Asia's growth to halt for first time

“The data flow reflecting the economic impact of measures to curb the spread of COVID-19 has gone from bad to worse,” S&P’s top global and regional economists said in a new report.

“We now see global GDP falling 2.4 percent this year, with the US and euro zone contracting 5.2 percent and 7.3 percent, respectively. We expect global growth to rebound to 5.9 percent in 2021,” they added.

READ MORE: UN: Global economy could shrink by 1% in '20 due to virus