Fri, Oct 07, 2022 @ 06:50 GMT
HomeLive CommentsOECD slashes global growth forecast, coronavirus is not only a demand shock

OECD slashes global growth forecast, coronavirus is not only a demand shock

In the interim report titled “Coronanvirus: the world economy at risk”, OECD warned that world is in its “most precarious position” since the 2008 global financial crisis. 2020 full-year growth forecasts is slashed from 2.9% to 2.4%, weakest since 2009.

OECD added that the outbreak “has already brought considerable human suffering and major economic disruption”. Growth prospects also “remain highly uncertain”. It also warned that if the situation worsens, “coordinated policy actions across all the major economies would be needed” for health care and economic stimulus.

OECD chief economist Laurence Boone said however, noted that “it’s not only a demand shock, it’s a confidence shock and supply chain disruption shock that central banks could not deal with alone.” She added, “confidence is falling everywhere so you don’t want to send a reactionary message, but at least a message that you are discussing and being prepared to take measures, and to do that jointly.”

Full blog post here.

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