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

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 percent this year, before climbing back 2.8 percent in 2021. 

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