OECD: Economic Recession Is Now Inevitable

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Coronavirus, transmitted to more than 600 thousand people worldwide, continues to adversely affect human life and the world economy. We will continue to feel the effects of this pandemic that affects many different sectors from tourism to real estate sector for a while. At least, the forecast of the Organization for Economic Development and Cooperation (OECD) is in this direction.

Effects of Coronavirus
OECD Secretary General Angel Gurria recently released a special report on the economic impact of the coronavirus pandemic. According to this report published by Gurria, if the coronavirus pandemic continues, it is waiting for a very difficult process for the world economy.

Currently, many countries including Turkey was forced to quarantine various companies and businesses. Although the industry of developed countries has not stopped completely, it has been adversely affected by the coronavirus. According to the OECD report, the economic growth rate in these countries will decrease by 2% per month as long as quarantine continues.

During this process, the economy of that country will of course be a heavy blow. OECD expects a serious shrinkage especially in the tourism sector. According to the published report, there may be a 70% decrease in the revenue of the tourism sector especially in developed countries.

Economic Recession
Many people around the world do not even go to the grocery store unless it is compulsory anymore. So it is not surprising that there will be a contraction in the tourism sector. However, according to the OECD, the effects of the coronavirus pandemic will not be limited to the tourism sector.

According to the OECD’s research, an average decrease of about 15% may occur in the output of developed countries, especially Germany, the UK and the USA. This shows that almost every sector can be negatively affected. OECD warns that this rate can reach up to 25% in smaller economies.

In light of this information, OECD emphasizes that the world economy will enter a recession process and this is inevitable. The section on the subject from the report is as follows:

“Many economies will go into recession. While we were struggling with this pandemic on the one hand, on the other hand, we tried to fix the economy, but economic recession was inevitable. ”

What to do?
According to the report published by OECD, first of all, it is necessary to cooperate and cooperate in order to fight the coronavirus and to bring the economy back to normal.

According to the OECD Secretary General, G20 member countries are now required to do everything they can to combat this pandemic. Gurria recommends that these countries take the following steps to combat the Coronavirus:

Recapitalize health and epidemiology systems
Implement relevant monetary, fiscal and structural policies
To remove existing trade restrictions to cover primarily medical supplies
To support developing and low income countries
Take action to support every employee and non-employee citizen
Helping all kinds of companies, especially small and medium, by preparing special support packages.


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