The Organization for Economic Cooperation and Development warned that even if the global economy has performed better-than-expected, it may be on track for an “unprecedented” decline in output.
In its latest economic outlook, the OECD said the world economy will contract by 4.5% this year — an upward revision from an estimate made in June that pointed to a 6% fall in gross domestic product (GDP).
“The drop in global output in 2020 is smaller than expected, though still unprecedented in recent history,” the OECD said in its report.
Going forward, the OECD expects the global economy to grow by 5% in 2021. Nonetheless, the outlook “remains exceptionally uncertain” due to the coronavirus pandemic.