Governments have taken unprecedented fiscal action in response to the COVID-19 crisis, but countries will need to support economic recovery in the face of fiscal challenges, according to Tax Policy Reforms 2020. Pressure on public finances and demands for fairer burden-sharing should give impetus to reach an agreement on digital taxation, it says.

GDP in the OECD area fell by 9.8% in real terms in the second quarter of 2020 compared with the previous period, reflecting global COVID-19 restrictions. This is the largest drop ever recorded for the OECD area, with the provisional estimates showing marked falls in activity in all major economies.

Korea has limited the damage to its economy from the COVID-19 crisis with swift and effective measures to contain the coronavirus, and protect households and businesses. Support for workers and the export-dependent economy should continue, as the recovery will be slow and uncertainty remains high, says the latest OECD Economic Survey of Korea.

South Africa responded swiftly to the COVID-19 pandemic, but the sharp drop in activity adds to long-standing challenges and raises the urgency of structural reforms, according to the Economic Survey of South Africa. The survey recommends a wide range of measures to improve the quality of and access to health care and support businesses and people.

Greece has responded swiftly and effectively to the Covid-19 pandemic and has managed to contain the spread of infections but the economy has been hit hard, adding to long-standing challenges. Government measures to strengthen the health system, support businesses and people’s incomes need to continue, according to latest Economic Survey of Greece.