The world faces the worst peacetime recession in a century due to coronavirus, reports Dpa.
The report says the Organization for Economic and Social Development (OECD) raised the alert on Wednesday.
He published a double set of forecasts in the latest edition of his Economic Outlook, twice a year.
One covers the best case for a world wave of COVID-19 and the worst case for a second wave.
“The economic result will be much worse if a second wave of rapid infection emerges later in the year,” the agency warned.
The OECD said that, in the one-shot scenario, global gross domestic product (GDP) is expected to decrease by 6% this year.
However, this will increase by 5.2 percent by 2021 to return to 98.9 percent from its 2019 level.
In the two-wave scenario, global GDP is projected to drop 7.6 percent in 2020, recovering only 2.8 percent in 2021 to reach 95 percent of its 2019 level.
In many advanced economies, the equivalent of at least five years of real per capita income growth could be lost by 2021.
Laurence Boone, chief economist of the OECD, said that ultra-accommodative monetary policies and an increase in public debt are needed.
He noted that this will be accepted if economic activity and inflation are depressed and even if unemployment remains high in 2020.