Covid-19: World Economy at Risk – OECD

The Organisation for Economic Cooperation and Development (OECD) economic outlook interim report for March, 2020 noted that Coronavirus presents the world economy with its greatest danger since the global financial crisis in 2008.

According to the Paris-based policy forum, “growth was weak but stabilizing until the coronavirus Covid-19 hit. Restrictions on movement of people, goods and services and containment measures such as factory closures have cut manufacturing and domestic demand sharply in China.”

“The impact on the rest of the world through business travel and tourism, supply chains, commodities and lower confidence is growing.”

“The global economy is set to grow only 2.4 percent this year, the lowest since 2009 and down from a forecast of 2.9 percent in November.”

The World Trade Organisation (WTO) also stated the coronavirus outbreak will have a substantial impact on the global economy.

According to the head of the organization, Roberto Azevedo, stated on Monday that “the effect on the global economy are likely to be substantial and will start to show up in the trade data in the weeks to come.”

The coronavirus has seen a spike in reported cases with Italy, Iran, South Korea and China among the countries worst hit since its outbreak.