The global economy is facing its gravest threat since the financial crisis, according to the Organisation for Economic Co-operation and Development (OECD), and it could actually contract in the first quarter of this year.
The Paris-based policy group has cut its forecast for global growth to 2.4% this year – the lowest since 2009 and down from its previous forecast of 2.9% in November.
It said prospects for China “have been revised markedly, with growth slipping below 5% this year, before recovering to over 6% in 2021, as output returns gradually to the levels projected before the outbreak”.
The UK is now expected to grow by 0.8%, the OECD said, down from its previous forecast of 1%, while its forecast for the US has been cut to 1.9% from 2%.
The OECD has also urged governments and central banks to take action to try to avoid a bigger impact.
Source: BBC News