Reports

9/16/2020

OECD, Economic Outlook Report

The narrowing estimate for the global economy is revised to 4.5% from the previous estimate of 6% revising the estimate for the Turkish economy to 2.9% from 4.8%...

The Organization for Economic Cooperation and Development (OECD) has released an Interim Economic Outlook Report.

The organization noting that the global economic outlook will continue to maintain uncertainties due to the Covid-19 outbreak, has reduced the narrowing estimate for the global economy to 4.5% from a level of 6% which was the estimate in June.

The narrowing estimate for the Turkish economy has also been reduced to 2.9% in the OECD report, from a level of 4.8% which was the estimate in June. The report also includes an estimated growth rate of 3.9% for the Turkish economy in 2021.

The report underlining that the global economic outlook will continue to maintain uncertainties due to the Covid-19 outbreak, includes the statement that the power of economic recovery displays considerable differences among countries and sectors. It is stated that the decline in global production has been less than expected during the Covid-19 outbreak. It is however stated that this may as well reduce the global growth rate with 2 to 3 points next year in case the outbreak hits once more in a more powerful manner and if tighter lockdown measures are applied.

OECD Chief Economist Boone

OECD Chief Economist Laurence Boone noting during the presentation of the report that the world is facing a heavy health crisis and the most dramatic economic slowdown since the Second World War, said “It is not certain when this (health crisis and economic slowdown) will end but there is a lot to be done by policy-makers to assist in building confidence.”

Boone underlining that governments have to avoid the mistake of a rapid tightening in fiscal policies as was the case in the post 2008 financial crisis, made the warning that company bankruptcies and unemployment will rise in case government support is not sustainable. Boone pointing out to digitalization in the economy made a call to governments to spend more for the “green economy”.