Thread by @OECDeconomy

1/ #Coronavirus #COVID19 OVID19 to lower already weak 2020 global economic prospects. The sharp slowdown in #China is negatively affecting business travel, tourism, supply chains, commodity markets and consumer confidence. oecd.org/economic-outlo…

2/ Containment measures to prevent the spread of #COVID19 coronavirus are sharply slowing manufacturing and consumption in #China. #OECD

3/ #Coronavirus to take larger toll than 2003 SARs given that #China ‘s economy is now 3x bigger.

4/ What will be the impact of #COVID19 in the global economy? A cautious #OECD draws 2 scenarios given the uncertainty over the length and extent of the spread.

5/ Contained outbreak scenario: #COVID19 could cause a 0.5% reduction in global GDP in 2020. Main driver: decline in Chinese demand

6/Downside scenario: if the epidemic continues spreading, stricter containment measures, lower confidence, and fear could further affect growth. 2020 global growth could halve from 2.9% in the #OECD November projections to 1.5%.

7/ Governments must act now to #CombatCoronavirus effects. 1/ Focus on people: support the health sector and the most vulnerable. 2/ Support firms, particularly in exposed sectors. 3/ Keep macro policy accommodative

Multilateral coordination will be crucial, particularly if the epidemic worsens. #Multilateralism can provide the most effective support to a global economy affected by #COVID19 #OECD oecd.org/economic-outlo…

The #OECD wishes to extend its support to all individuals and families affected by #Coronavirus. Action must be taken now and be coordinated across countries, avoiding both over-reactions and under-reactions.