The Organization of
Economic Cooperation and Development (OECD) is a unique forum where the
governments of 36 member states with market economies work with each other to
promote economic growth, fighting poverty, prosperity and sustainable
development.
The OECD publishes economic reports, statistical databases, analyses,
and forecasts on the outlook for economic
growth worldwide. Reports can be global, regional,
or national in nature. The group analyzes and reports on the impact of social
policy issues (such as the corona virus) on economic growth, and makes policy
recommendations designed to promote growth with sensitivity to environmental
issues. The organization also seeks to eliminate bribery and other financial
crime worldwide.
According to the OECD it predicts that the corona virus pandemic will
have a world impact on the economies. Economies will decline into a recession
-6%, and this in the event there is no new outbreak in the fall of 2020 as the
pandemic has consumed per capita GNP.
Many businesses will not reopen and this will increase unemployment and
reduce production. The pandemic has uncovered how the world economies are
correlated between them, meaning that the pandemic had shocking effects that were
easily transmitted throughout the world.
At the same time it is difficult for one country (especially the economic
weaker ones) to turn its economy to growth when the world economies have not
recovered. This insecure environment which brought about a lockdown has had an
impact on total demand. Consumption has decreased as a result by consumers, and
investments are predicted to decrease by 10.5%. World commerce will also have
an impact on the economies and especially to countries that are depended on
exports.
The economic recession brings
about a risk of massive defaults imminent since businesses will not be able to
further sustain any additional financing. The pandemic will also impact
countries with high debt making them easily vulnerable, mainly the emerging
market economies.
