A global recession looks “increasingly likely” in the first half of this year, “and we must act now to avoid a protracted recession”, said Angel Gurria, Secretary-General of the Organisation for Economic Co-operation and Development (OECD).
“Only a sizeable, credible, internationally coordinated effort can deal with the immediate public health emergency, buffer the economic shock and develop a path towards recovery,” he said in a weekend statement.
While the government is spending packages on the COVID19, there has been no plan from fora such as the G7 or G20.
To ensure progress on the scientific front including mass testing and vaccine research, the government needs to work together, Gurria said.
Richer governments and their central banks are raising trillions of dollars to combat COVID-19, but concerns are mounting for poorer ones without access to capital markets and adequate health systems.
Charlie Robertson, Global Chief Economist at Renaissance Capital in London, told AFP said “If South Africa can’t afford to control the virus, it will spread again. No country can afford to keep every other country banned from travelling.”
Urging action from the G7 and G20 nations he further included “So I would argue there has to be a global financing solution to address this virus crisis”.
However, under the isolationist US presidency of Donald Trump, talk of global coordination has yet to resonate, and Washington is struggling to bridge its own fissures.
