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OECD lowers global growth forecasts coronavirus damages

OECD lowers global growth forecasts coronavirus damages

The Organization for Economic Co-operation and Development (OECD) warned on Monday of the major implications of this year's emerging coronavirus outbreak on global economic growth, cutting the G20 GDP forecasts to the lowest level since the 2008-2009 financial crisis.  

The OECD slashed its growth forecast for the G20 to 2.4 percent this year from 2.9 percent estimated in November.

Assuming that the level of the coronavirus outbreak will decline this year, it also warned that its increased prevalence would "significantly weaken expectations".

"The main message from this downside scenario is that it would put many countries into a recession, which is why we are urging measures to be taken in the affected areas as quickly as possible," the OECD said.

The organization also said that China's economic growth in 2020 is expected to decline by 4.9 percent, with a decline of 0.8 percent from the previous projections, while downgraded the US growth forecasts by 0.1 basis points to 1.9 percent.

In the euro zone, the OECD expects growth to reach 0.8 percent in 2020, down from 1.1 percent predicted three months earlier. In Japan, growth is expected to reach 0.2 percent, compared to prior estimates of 0.6 percent.

The UK economy would expand 0.8 percent this year, down from 1.1 percent.

Regarding the latest updates about the coronavirus, the deadly virus has so far claimed nearly 3,000 lives and at least 85,000 infected cases have been confirmed worldwide.

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