The Organization for Economic Cooperation and Development published significantly more pessimistic forecasts for negative economic growth in the wake of the coronavirus pandemic on Wednesday. The international organization now expects that global GDP will contract by 6% in 2020, while Israel’s GDP will shrink by 6.2%, presuming there’s no second wave of virus outbreaks.
The coronavirus pandemic is the worst health and economic crisis since World War II, stated the OECD on Wednesday.
The OECD is forecasting a 50% chance of a second wave breaking out. Should this happen, global GDP will contract by 7.6% while Israel’s GDP will contract by 8.3%, the organization forecasts.
In the second quarter of 2020, the OECD expects its member countries will see their joint products contract by 13% versus the previous quarter.
- Israeli Economy Contracts at a 7% Annual Rate in First Quarter Amid Coronavirus Crisis
- Hit Hard by the Coronavirus, Jerusalem Real Estate Market Looks for a Turnaround
- Israel's Economic Crisis Is Just Beginning
The OECD’s new forecast is more pessimistic than the last official forecast released by the International Monetary Fund, which forecast that global GDP would contract by 3% for the year, and by the Bank of Israel’s research department, which published a report on May 25 forecasting that Israel’s GDP would contract by 4.5% in 2020.