The globe is facing the worst peacetime recession in a century due to the coronavirus, Dpa reports.
The report claims that the organization for Economic and Social Development (OECD) gave the warning on Wednesday.
It published a double set of predictions in the latest edition of its twice-yearly Economic Outlook.
One covers a best-case scenario for a worldwide single wave of COVID-19, and a worst-case scenario of a second wave.
“The economic outcome will be much worse if a second wave of rapid contagion arises later in the year,’’ the body warned.
OECD said in the single-hit scenario, world gross domestic product (GDP) is forecast to decline by 6 percent this year.
However, this will rise by 5.2 percent by 2021 to return to 98.9 percent of its 2019 level.
In the two-wave scenario, global GDP is projected to decline by 7.6 percent in 2020, recovering by only 2.8 percent in 2021 to reach 95 percent of its 2019 level.
In many advanced economies, the equivalent of five years or more of per capita real income growth could be lost by 2021.
Laurence Boone, OECD Chief Economist, said ultra-accommodative monetary policies and higher public debt are necessary.
He noted that this will be accepted if economic activities and inflation are depressed, and also if unemployment in 2020 remains high.
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