OECD Expects Global Growth to Contract 7.6% in 2020 if 2nd Wave Hits

The Organization for Economic Cooperation and Development (OECD) said on Wednesday that the global growth could contract by 7.6% this year if there is a second wave of coronavirus outbreak.

 

“Economic impacts are dire everywhere,” said OECD, while stating that the virus outbreak is on track to cause the worst recession outside of wartime in 100 years.

If there is a second wave, OECD expected global growth to contract by 7.6%, and will “remain well short” of its pre-crisis at the end of 2021. However, the contraction was expected to reduce to 6% if there is no second wave.

“Both scenarios are sobering, as economic activity does not and cannot return to normal under these circumstances,” added OECD.