Second covid wave could push world GDP down more than 7% for year

A second lockdown-triggering coronavirus outbreak could batter the sputtering world economy, sending global GDP down 7.6% for the year, according to projections released Wednesday by the Organisation for Economic Cooperation and Development.

In a gloomy economic report, the agency said that even if a second COVID-19 spike is avoided, economic activity around the world still projects to drop some 6%.

The more dire scenario — a second wave with new lockdowns — could cause U.S. GDP output to slump 8.5%, according to the Paris-based organization.

“Uncertainty is clearly extreme in the current context,” Organisation for Economic Cooperation and Development Secretary-General Angel Gurría said before a ministerial meeting.

Global GDP grew by 2.3% in 2019, its lowest rate of the decade.

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