By Pam Martens and Russ Martens: March 2, 2020 ~
The Organization for Economic Co-operation and Development (OECD) has released a dire outlook for global economic growth this year as a result of the spread of the coronavirus Covid-19. Its latest Interim Economic Outlook provides both a best-case scenario, where the virus is broadly contained, as well as a scenario in which contagion spreads.
The best-case scenario, which factors in limited spread outside China, will bring little cheer to world leaders. It projects global economic growth falling to 2.4 percent this year compared to an anemic global growth of just 2.9 percent last year.
If there is wider spread of the virus around the globe, the OECD says global growth could be cut to as low as 1.5 percent – which would be just half of what the OECD was forecasting last November.
The OECD also projected that some countries, such as Japan and the Euro area, could enter recession as a result of stringent containment measures and loss of confidence.
As the dire “Interim Outlook” was released in Paris, the OECD’s Chief Economist, Laurence Boone, said this:
“The virus risks giving a further blow to a global economy that was already weakened by trade and political tensions. Governments need to act immediately to contain the epidemic, support the health care system, protect people, shore up demand and provide a financial lifeline to households and businesses that are most affected.”