OECD cuts down growth forecasts

OECD cuts down growth forecasts

OECD cuts down growth forecasts

Alamy Photo

The Organization for Economic Co-Operation and Development (OECD) slashed its 2020 global economic growth forecasts, in an update of its projections on March 2, in response to the coronavirus outbreak.

It now expects the global economy to grow by 2.4 percent, half a percentage point less than it previously thought and indicating to the worst performance since the 2008 crisis. It also warned it could be as low as 1.5 percent if the virus lasts long and spreads widely.

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.”

OECD lowered its economic growth forecast for Turkey to 2.7 percent in 2020, 0.3 points less than its November 2019 forecast.

However, it raised its Turkey GDP forecast for 2021 to 3.3 from 3.2 percent.

The Turkish economy grew 0.9 in 2019, with a robust GDP increase of 6 percent in the last quarter.