World economy may shrink because of virus, watchdog says

A global agency says the spreading new virus could make the world economy shrink this quarter for the first time since the international financial crisis more than a decade ago.

In a special report on the impact of the virus, the Organisation for Economic Cooperation and Development said Monday that the world economy is still expected to grow overall this year and rebound next year.

But the OECD lowered its forecasts for global growth in 2020 by half a percentage point, to 2.4% and said the figure could go as low as 1.5 per cent if the virus lasts long and spreads widely.

In addition to the considerable human suffering the virus has wrought, with more than 3,000 deaths worldwide, the OECD said ""Global economic prospects remain subdued and very uncertain."