The Organization for Economic Cooperation and Development (OECD) warns that the impact of coronavirus in the world is beating its worst economic forecast and stresses that a coordinated effort by governments and central banks to overcome the crisis is urgent.
At the beginning of the month, when launching its intermediate forecasts, it had advanced that, according to its most adverse hypotheses, coronavirus could halve the growth of the world economy in 2020 and place it at 1.5%, causing a recession in economies such as Europe or Japan.
“Now it seems that we have already advanced much further of the most severe scenario expected then, “said the secretary general of the OECD, Angel Gurria, in a new digital platform launched last night by his organization to group data and response policies.
In his view, “a level of ambition is required similar to the Marshall plan, which created the OECD, and a vision similar to that of the New Deal, but now worldwide. “
The third great economic “shock” of the 21st century
Gurria stressed that this pandemic constitutes the third great economic, financial and social “shock” of the 21st century, after the attacks of September 11, 2001 and the global financial crisis of 2008.
Among its effects, the production suspension in the affected countries, with collateral damage in global supply chains, and a sharp drop in consumption that is coupled with a collapse in confidence.
The representative of the so-called “club of rich countries” warned that although the strict measures that are being applied are essential to contain the virus, they push economies to “an unprecedented deep freeze state, from which the recovery will not be direct or automatic “
The World Health Organization (WHO) announced this Friday that there more than 210,000 cases of Covid-19 worldwide, while deaths have exceeded the 9,000 barrier.
Gurria stressed that in addition to acting to minimize loss of life, a priority is also a coordinated effort against the “great economic crisis” unleashed, which will continue even when the worst sanitary part has passed.
The OECD Secretary-General made recent statements such as that of the G7, who this Monday promised to “do whatever it takes” through “close cooperation” to curb the economic and health crisis, but pointed out that it is insufficient.
Gurria called for supporting healthcare personnel and for healthcare regulatory agencies to work together to remove the bureaucratic obstacles that hinder the development and application of vaccines and treatments, even in the case of uninsured patients.
The OECD representative also called on governments to reduce requirements for accessing unemployment compensation, and warned central banks that a joint approach to monitoring and diagnosing mounting tensions is better than “loose and inconsistent responses ”