OECD: 'Governments must act now' on 'severe' coronavirus impact

Growth to fall to 1.5%

The OECD has urged global governments to “act now” to cushion the “severe” economic impact of the coronavirus crisis, warning that global growth could halve from levels projected before the outbreak to 1.5%.

In a statement on Monday (2 March) the intergovernmental economic organisation said global governments must step in to boost investment and accelerate the recovery of affected industries, such as healthcare, and "buffer the shock through tax and credit change easing and flexible working". Market Movers Blog: FTSE 100 rallies on central banks' coronavirus pledge Urging coordinated international action, the OECD now predicts a "severe, short-lived downturn" in China, with growth falling below 5%, while Japan, Korea and Australia will also be "hit hard". It added that the impact will ...