GLOBAL ECONOMY TO SUFFER WORST PEACE-TIME SLUMP, OECD PREDICTS

The global economy will suffer the biggest peace-time downturn in a century before it emerges next year from a coronavirus-inflicted recession, the Organization for Economic Cooperation and Development (OECD) said on Wednesday, June 10, 2020.

In a report for Reuters, Leigh Thomas said the US economy, the world’s biggest, is seen contracting 7.3% this year before growing 4.1% next year. In the event of a second outbreak, the US recession would reach 8.5% this year and the economy would grow only 1.9% in 2021, the OECD said.

Meanwhile, the euro area is heading for a downturn of 9.1% this year followed by 6.5% growth next year. But the recession could reach 11.5% this year in the event of a second outbreak, followed by growth of 3.5% in 2021.

Britain is expected to see the worst downturn among the countries covered by the OECD, with its economy forecast to contract 11.5% this year before recovering 9.0% next year. A second outbreak could trigger a slump of 14.0% this year followed by a rebound of 5.0% next year, the OECD said.