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

A woman wearing a face mask rests on a bench at a public park in Beijing amid easing of restrictions enforced to prevent the spread of the coronavirus. AP Photo

Visitors look at a giraffe at the national zoo in Kuala Lumpur, Malaysia. Reuters

Pedestrians walk in a market in Kathmandu. AFP

A woman wearing a protective face mask waits to check her temperature in an Apple store in Shanghai, China. Reuters

People wearing face masks to protect against the spread of the new coronavirus walk in Yokohama, near Tokyo. AP Photo

A woman wearing a face mask to protect against the spread of the coronavirus walks down stone steps at the Ofuna Kannon Buddhist temple in Kamakura, near Tokyo. AP Photo

TV crew wear protective masks as they produce a programme about the coronavirus pandemic in Hanoi, Vietnam. Reuters

A man wearing a surgical mask walks along the Helix Bridge next to the Marina Bay Sands hotel in Singapore. EPA

Students, wearing face masks amid the coronavirus pandemic, sit by a mural depicting the Indonesian flag at an Islamic junior high school in Banda Aceh. AFP

A worker checking on a finished motorcycle at an assembly unit of Royal Enfield motorcycle inside its factory in Oragadam, Tami Nadu. AFP

A municipal corporation worker fumigates a neighbourhood in Mumbai, Maharashtra state, India. AP Photo

A demonstrator wearing a clown mask and holding a sign that says 'Where is Queiroz?' takes part in a protest against Brazilian President Jair Bolsonaro in front of the Superior Electoral Tribunal (TSE), amid the coronavirus disease, in Brasilia, Brazil. Reuters

Health workers attend a rally in support of Colombian doctor Jose Buelvas Diaz outside the San Ignacio Hospital in Bogota, Colombia. Buelvas Diaz has reportedly received anonymous threats after one of his patients died with Covid-19 in Barranquilla, north of Colombia. EPA

Migrants, part of a group of 50 Guatemalans deported from the United States, wear face masks as a preventive measure against the coronavirus, as they get into a bus upon landing at the air force base in Guatemala City. AFP

A man in line at Christian City, an assisted living home, to cast their ballots after Democratic and Republican primaries were delayed due to coronavirus restrictions in Union City, Georgia. Reuters

Voters wait at Christian City, an assisted living home, to cast their ballots after Democratic and Republican primaries were delayed due to coronavirus restrictions in Union City, Georgia. Reuters

Clark County election workers talk behind a ballot box set up for primary election amid the coronavirus pandemic in North Las Vegas, Nevada. This is the first time ballots have been mailed to all registered active voters in Nevada's history as the state holds its first-ever election done almost entirely by mail because of the risk of spreading Covid-19. The Clark County registrar said unofficial results of the election will be reported tonight but, final results will not be available until after the last ballots are counted on June 16 or 17. Getty

People who are registering to vote or who need a ballot wait in line outside the Clark County election department, which is serving as both a primary election ballot drop-off point and an in-person voting centre amid the coronavirus pandemic in North Las Vegas, Nevada. This is the first time ballots have been mailed to all registered active voters in Nevada's history. Getty Images

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.

Never in our history have we seen such a tremendous reversal of fortunes for so many

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.

An employee looks at instructions displayed on an overhead screen while assembling a ventilator on the production line at the Vinsmart factory n Hanoi, Vietnam. Bloomberg

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.