Global economy faces unprecedented uncertainty, OECD says

The global economy is facing unprecedented uncertainty this year as researchers race to find a vaccine for the coronavirus. Almost all countries will be financially worse off despite efforts by governments to reduce some of the worst effects of the pandemic. The Organisation for Economic Co-operation and Development, a group of the world's most developed economies, presented two starkly different forecasts for prospects of a recovery in growth. They were based on a scenario where a vaccine becomes available for Covid-19 and one where there is none. But in each case, the outlook is grim for 2020. “This is the most uncertain and dramatic outlook since the creation of the OECD,” Laurence Boone, the group’s chief economist, said yesterday. “We have never been confronted by such uncertainties, so we can’t make projections as we usually do.” Policymakers will be trying to providing stimulus for long enough to get their economies back on track, without becoming stuck with costly safety nets, the OECD said. Job losses in the most affected sectors, such as tourism, hospitality and entertainment, will particularly hit low-skilled, young and informal workers. The International Monetary Fund said the per capita incomes of 170 countries are forecast to be lower by the end of the year. “Never in our history have we seen such a tremendous reversal of fortunes for so many,” Kristalina Georgieva, managing director of the IMF, said late on Tuesday. “We have never had such a truly global crisis as the one we face now.” Worldwide, coronavirus cases were close to 7.3 million on Wednesday, with 3.4 million recoveries and 413,237 deaths. Yesterday, the state of governance around the world after the pandemic was discussed in an online forum hosted by the Mohammed bin Rashid Centre for Government Innovation. “This crisis has been an extraordinary test of governments to maintain public trust,” said Geoff Mulgan, professor of collective intelligence, public policy and social innovation at University College London. Huda Al Hashimi, assistant director of general strategy and innovation at the office of the UAE Prime Minister, Sheikh Mohammed bin Rashid, said the role of governments after Covid-19 would become more challenging, with increased expectations from the public. The UAE recorded another 603 coronavirus cases on Wednesday, bringing the country's total to 40,507. The new infections were identified after more than 47,000 Covid-19 tests were conducted in the previous 24 hours. Another 1,277 people have recovered from the virus, taking the total to 24,017. Health officials confirmed one more patient had died as the country's death toll rose to 284. Saudi authorities on Wednesday recorded more than 3,000 cases of Covid-19 for the fifth consecutive day, showing a continued surge in infections as the kingdom resumes economic activity. Official data showed 36 more people died from the coronavirus in the previous 24 hours and 3,717 more people were infected. The latest toll brings the number of confirmed Covid-19 cases in the kingdom to 112,288, with total fatalities at 819. The Saudi government has sought to clamp down on those breaching measures designed to contain the pandemic's spread. This week authorities closed 71 mosques where coronavirus infections were detected and arrested a Saudi man who forged health certificates allowing Yemenis to enter the kingdom, claiming they were free of the coronavirus. Saudi officials have called on the public to take a serious approach to measures to counter the spread of the pandemic, as they reopened the economy and let public prayers resume. Across the Arabian Gulf, governments have been warning citizens and residents not to become complacent as economic pressure forces the reopening of businesses and shops. Bahraini authorities reported 469 news cases on Wednesday. There has been more than 16,000 cases confirmed on the island and 29 deaths. But Lt Col Manaf Al Qahtani, a member of the coronavirus national task force in the country, told a briefing in London this week that Bahrain was testing potential patients early and quickly isolating those who contracted Covid-19. Lt Col Qahtani said the authorities were working with foreign embassies to contact members of the labour force to trace the infections. Qatar reported four new deaths and 1,716 more people who have been infected, bringing overall cases to 73,533, and deaths to 66.

Global economy faces unprecedented uncertainty, OECD says

Almost all countries set to be financially worse off despite efforts by governments to reduce worst effects of pandemic