A global agency says the spreading new virus could make the world economy shrink this quarter, for the first time since the international financial crisis more than a decade ago.

The Organization for Economic Cooperation and Development says Monday in a special report on the impact of the virus that the world economy is still expected to grow overall this year and rebound next year.

But it lowered its forecasts for global growth in 2020 by half a percentage point, to 2.4%, and said the figure could go as low as 1.5% if the virus lasts long and spreads widely.

The last time world GDP shrank on a quarter-on-quarter basis was at the end of 2008, during the depths of the financial crisis. On a full-year basis, it last shrank in 2009.

The OECD said China’s reduced production is hitting Asia particularly hard but also companies around the world that depend on its goods.

It urged governments to act fast to prevent contagion and restore consumer confidence.

The Paris-based OECD, which advises developed economies on policy, said the impact of this virus is much higher than past outbreaks because “the global economy has become substantially more interconnected, and China plays a far greater role in global output, trade, tourism and commodity markets.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Hainan Airlines to fully resume domestic flights in China’s tourist island

HAIKOU – Hainan Airlines plans to resume all domestic flights into and out of Hainan, southern China’s tourist island, starting Sunday, according to the company. The airline said it is expected to offer nearly 500 flights on more than 110…

Kim Kardashian West to ‘freeze’ Instagram posting for 1 day to protest hate speech

Kim Kardashian West is among the handful of celebrities participating in an Instagram “freeze” Wednesday in protest of hate speech and disinformation on the platform and its parent company, Facebook. The Stop Hate For Profit coalition, a group backed by…

Dreams grounded: Cadet pilots face uncertain future as coronavirus turns shortage to surplus

SYDNEY/MONTREAL/SEOUL (Reuters) – Mark, 34, quit his job as a town planner in London last year to start flight-training school, buoyed by a conditional offer of employment with budget carrier easyJet (EZJ.L) at a time when the airline industry was…

Beijing issues vouchers to boost cultural consumption

Beijing has begun issuing e-vouchers to promote consumption in the cultural sector. The vouchers, issued by the State-owned Cultural Assets Administration Center, have a total value of about 50 million yuan ($7 million) to be used for the purchase of…