OECD: Global economy will take at least 2 years to recover from coronavirus

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The global economy will take at least two years to recover from the impact of coronavirus, according to the Organisation for Economic Co-operation and Development (OECD), which is formed of 37 nations worldwide.

In its latest global outlook, the intergovernmental economic body warns that the pandemic has caused “the most severe economic recession in nearly a century and is causing enormous damage to people’s health, jobs and well-being.”

The report lays out two scenarios for the global economy.

In one scenario a second wave of infections, with renewed lock-downs, hits before the end of 2020.

In this so-called double-hit scenario the OECD sees world economic output falling 7.6% this year, before climbing back 2.8% in 2021. 

In the second scenario another major outbreak is avoided. If that were to occur, the OECD forecasts a 6% fall in economic activity in 2020.