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The Covid-19 pandemic is having a significant impact on the economy
The COVID-19 pandemic is causing large-scale loss of life and severe human suffering. Economic contagion is also spreading fast. This double shock could be devastating if we do not act quickly, effectively and in a coordinated manner.
COVID-19 has taken a terrible human toll and the necessary containment measures have devastated our economies and societies. We have calculated a 2 percentage points fall in global annual GDP growth per month of confinement, but this is an optimistic assumption now.
In light of the economic crisis it has triggered - which the OECD estimated at a loss of 2pc of annual GDP per month of confinement - I commend the Presidency for calling this meeting.
COVID-19 has taken a terrible human toll and brought our globalised economy to a near standstill. The OECD estimates a loss of 2 percentage points in this year’s GDP growth, per every month of confinement. The pandemic became an economic crisis and will have long-lasting impacts in our labour markets, and in our social fabric.
The OECD estimates the impact of the crisis at a loss of 2 percent per month of confinement in annual GDP growth in 2020. Many economies are heading into deep recession.
2020 IMF and World Bank Spring Meetings: Written Statement to the Development Committee
This crisis comes against the backdrop of strained global trade, stagnating global growth, protracted conflict and climate-related crises – not to mention the constrained fiscal space and existing challenges in the health and social structures in many countries.
2020 IMF and World Bank Spring Meetings: Written Statement to the IMFC.
The call for a coordinated, sizeable, well-targeted collective response to the crisis is being operationalised in the G20 Action Plan, a living document that we are endorsing today. The OECD is proud to have contributed to its development under Saudi leadership.