Global GDP high projections for this year fall from 2.9 to 2.4% due to the coronavirus.
Global impact of the coronavirus and decreases in Chinese productions influenced the reduction of the economic growth forecast made by the OECD (Organization for Economic Co-operation and Development) for 2020. The new expansion forecast of 2.4% is the lowest since 2009.
"The global economic outlook remains subdued and very uncertain due to the coronavirus outbreak." Emphasized the OECD in its report, also citing the risk of reduction in the global economy in this first quarter.
"The main message for this downturn scenario is that it will put many countries into recession, which is why we urge urgent action to be taken in affected areas as soon as possible," OECD chief economist Laurence Boone told Reuters.
New projections
The new projections made by the OECD for China is for a growth rate of 4.9%, representing a reduction of 0.8 percentage point from the previous estimate of 5.7%.
The organization estimates that the Chinese economy will recover in 2021 from the effect of the coronavirus. With an estimate of 6.4%.
For the United States, the 2020 bullish forecast reduced from 2% to 1.9%, going to 2.1% in 2021. In Eurozone countries, the expansion estimate dropped to 0.8% from 1.1% previously. For 2021 growth should rise to 2.1%.
For Brazil, the OECD growth projection was maintained at 1.7% in 2020 and at 1.8% in 2021.
growth may slow
According to the OECD, the estimate of a 0.5 reduction in global growth is considering a scenario where the highest peak of cases of the coronavirus epidemic is in China and not so great in other countries.
Otherwise, with longer and more intensive outbreaks of the epidemic across other continents, it could bring the global growth rate to a level of just 1.5% in 2020.
On the other hand, the institution projects that the global economy can recover. With a possible growth of 3.3% in 2021, if the epidemic continues to increase in this first quarter in China and is contained in other countries.
