Global Economy Doing Better than First Thought
September 16, 2020
The global economy is doing better than first
thought during the coronavirus pandemic, but still
is vulnerable to a new outbreak of the virus, an
international economic monitoring group sai
The Organization for Economic Cooperation and
Development, a Paris-based group of 37 Western
countries and their allies, projected that the
world’s economy will slip 4.5% this year, an
improvement from the 6% drop it predicted in June.
there is no follow-up (to $3 trillion in coronavirus
aid already approved), then 2021 will take a hit,”
Boone said. “We are concerned that if there is no
stimulus, people in the most precarious position
will suffer most.”
The OECD said the world’s economic fortunes will
rebound next year, growing by 5%, but cautioned that
the outlook is "subject to considerable uncertainty"
as the pandemic remains untamed.
Meanwhile, chief OECD economist Laurence Boone said,
“Momentum appears to be plateauing and confidence
The 2021 projection assumes that "sporadic local
outbreaks will continue" and that a vaccine will not
be widely available until late next year, a year or
more later than President Donald Trump is predicting
in the United States.
The OECD predicted the U.S. economy will do better
this year than originally thought, with the world’s
biggest economy contracting 3.8% instead of dropping
by 7.3% as first forecast.
But Boone said continued economic improvement in the
U.S. is contingent on whether the White House and
lawmakers can agree on at least a new $1.5 trillion
coronavirus relief package, a deal that so far has
The OECD said No. 2 China is expected to be the only
country among the world’s 20 biggest economies to
grow this year, advancing by 1.8% instead of falling
by 2.6% as previously projected.
But the OECD cut its forecasts for India, Mexico and
The OECD advised governments to not raise taxes or
cut spending next year "to preserve confidence and
It said, “The aim must be to avoid premature
budgetary tightening at a time when economies are