Global economy will suffer for years to come, says OECD

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The existence will take years to recover from the coronavirus pandemic, the Organisation for Commercial Co-operation and Development has warned.

Angel Gurría, OECD secretary blended, said the economic shock was already bigger than the financial catastrophe.

He told the BBC it was “wishful thinking” to believe that countries would ricochet boundary back quickly.

The OECD has called on governments to rip up spending rules to secure speedy testing and treatment of the virus.

Mr Gurría said a recent omen that a serious outbreak could halve global growth to 1.5% already looked too bullish.

While the number of job losses and company failures remains uncertain, Mr Gurría voted countries would be dealing with the economic fallout “for years to premiere c end”.

He said many of the world’s biggest economies would fall into set-back in the coming months – defined as two consecutive quarters of economic decline.

“True level if you don’t get a worldwide recession, you’re going to get either no growth or negative growth in scads of the economies of the world, including some of the larger ones, and therefore you’re flourishing to get not only low growth this year, but also it’s going to take larger to pick up in the in the future,” he added.

Big shock

Mr Gurría said the economic uncertainty fashioned by the virus outbreak meant economies were already suffering a bigger stupefy than during the September 11 terror attacks or the 2008 monetary crisis.

He said: “And the reason is that we don’t know how much it’s going to burlesque to fix the unemployment because we don’t know how many people are going to end up unemployed. We also don’t be acquainted with how much it’s going to take to fix the hundreds of thousands of small and medium darings who are already suffering.”

Governments around the world have taken unprecedented vestiges to support workers and businesses during the outbreak.

Policymakers in the UK have pledged to pay the wages of workers unable to work due to the coronavirus pandemic.

Mr Gurría called on governments to rip up take rules and “throw everything we got at it” to deal with the crisis.

However, he put someone on noticed that bigger deficits and larger debt piles would also weigh on heavily liable countries for years to come.

No quick recovery

Mr Gurría said that upstanding weeks ago, policymakers from the G20 club of rich nations believed the restoration would take a ‘V’ shape – with a short, sharp drop in budgetary activity followed swiftly by a rebound in growth.

“It was already then mostly wishful thoughtful,” he said.

“I do not agree with the idea of a ‘V’ shaped phenomenon … Privilege now we know it’s not going to be a ‘V’. It’s going to be more in the best of cases like a ‘U’ with a fancy trench in the bottom before it gets to the recovery period. We can avoid it looking be an ‘L’, if we take the right decisions today.”

The OECD is calling for a four-pronged map to deal with the outbreak, including free virus testing, greater equipment for doctors and nurses, cash transfers to workers including the self-employed and tax payment fetes for businesses.

Mr Gurría compared the level of ambition to the Marshall Plan – which forbore to pay for the reconstruction of Europe after the Second World War.

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