21:55 2 March 2020
OECD lowers its forecast for global GDP growth in '20 to 2.4% from 2.9%
The Organisation for Economic Cooperation and Development (OECD) has lowered its estimates of global GDP growth in 2020 to 2.4 percent from 2.9 percent in connection with the coronavirus epidemic, according to the latest report. According to the OECD, in a negative epidemic scenario, G20 countries should take coordinated action to support growth.
Assuming the peak of China's coronavirus outbreak occurs in the first quarter of 2020 and epidemics in other countries are mild and limited, global growth may decrease by around 0.5 percentage points this year.
Other negative risk factors for global GDP growth prospects include m.in. tensions in world trade.
The OECD recommends, with baseline assumptions, that the world's central banks maintain computational policies, without the need to cut us interest rates. The ECB and the Bank of Japan may, in the current situation, face the need to implement non-standard actions, with limited room to cut rates, the OECD believes.
(PAP)
