The largest decline in the world economy in 100 years

The Organization for Economic Cooperation and Development predicted that the global economy will witness the largest decline in times of peace in 100 years before it emerges in the next year from the stagnation caused by the Corona virus pandemic.

According to Arabia Net, the organization predicts that the global economy will shrink 6% this year before returning to achieve 5.2% growth in 2021 in the event that the pandemic remains under control .

But the Paris-based organization said that another equally likely scenario involved a second wave of contagion this year that could see the global economy shrink by 7.6% before it It is growing at just 2.8% next year.

Lawrence Boone, chief economist of the organization, wrote in the introduction to the revised report by the end of 2021, the income loss would exceed any previous recession in the last hundred years in times of war, with Severe and long-term consequences for people, companies and governments.

As economic and social expectations for the next decade were shaped by ways to respond to the crisis, Boone urged governments not to shy away from debt-funded spending to support low-wage workers and investment.

>

She added that there is a need for super-easy monetary policies and an increase in public debt, and this will be acceptable as long as economic activity and inflation remain low and unemployment is high.

Given that the risk of a second wave of the epidemic keeps blurring high, Boone said it was now inappropriate to raise the flame of trade tensions and governments should cooperate to find a cure and vaccine for the virus.

The organization said that the US economy, the largest in the world, is expected to contract 7.3% this year before returning to growth by 4.1% next year.

In the event of a second wave of the epidemic, the recession in the United States will record 8.5% this year, while the economy will grow by only 1.9% in 2021.

Meanwhile, the eurozone is heading towards a decline of 9.1% this year, followed by a growth of 6.5% in the next year.

But the recession may reach 11.5% this year in the event of a second wave of outbreaks, followed by a growth of 3.5% in 2021.

Britain is expected to witness the worst decline among the countries covered by the organization, as its economy is expected to shrink 11.5% this year before ...