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The Organization for Economic Cooperation and Development says Monday in a special report on the impact of the virus that the world economy is still expected to grow overall this year and rebound next year.
But it lowered its forecasts for global growth in 2020 by half a percentage point, to 2.4 percent, and said the figure could go as low as 1.5 percent if the virus lasts long and spreads widely.
The last time the world GDP shrank on a quarter-on-quarter basis was at the end of 2008, during the depths of the financial crisis. On a full-year basis, it last shrank in 2009.
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It urged governments to act fast to prevent contagion and restore consumer confidence.
The Paris-based OECD, which advises developed economies on policy, said the impact of this virus is much higher than past outbreaks because “the global economy has become substantially more interconnected, and China plays a far greater role in global output, trade, tourism, and commodity markets.