World economy to contract at least 6% in 2020: OECD
The global economy will contract at least six percent this year, with the unprecedented loss of income and “extraordinary uncertainty” caused by measures to contain the coronavirus outbreak, the OECD said Wednesday.
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In the case of a second wave of contagion later in the year, economic output could shrink by as much as 7.6%, it warned.
In both scenarios, recovery will be “slow and uncertain”.
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GDP growth should resume in 2021, by 5.2% if the virus is contained, and 2.8% if there is another infection wave, the Organisation for Economic Co-operation and Development said in its latest outlook, entitled “World Economy on a Tightrope”.
It warned that by the end of next year, “the loss of income exceeds that of any previous recession over the last 100 years outside wartime, with dire and long-lasting consequences for people, firms and governments.”
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As unemployment rises, private debt levels in some countries are “uncomfortably high,” said the report, “and business failure and bankruptcy risks loom large.”
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