Coronavirus Could Spark New Global Recession, Says OECD

Entity that brings together rich countries estimates lowest growth since 2009; after week of losses, markets react

The coronavirus outbreak could lead the world economy into its worst recession since the 2008/2009 crisis, the OECD (Organization for Economic Cooperation and Development) said yesterday.

The organization estimates 2.4% of global growth this year, the lowest level since 2009. If the disease spreads to Asia, Europe, and the USA, the projection will fall to 1.5%.

The IMF and the World Bank have said they will help countries hit with loans, if necessary. The G7, a group of the most industrialized nations, meets today to define measures.

QINGDAO, 03/02, 2020 (Xinhua) -- Slowed by the Coronavirus, China Inc. Struggles to Reopen (Xinhua/Li Ziheng)

The announcements gave the market optimism, and the stock exchanges around the world registered an increase after a week of losses. The Ibovespa followed the trend and rose 2.36%.

Multinationals with subsidiaries in Brazil have taken actions to prevent contamination of the virus in the corporate environment, such as adopting remote work and limiting meetings with visitors from other countries.

Law passed in February determines that absence from work due to suspected infection is considered a justified absence. 

Translated by Kiratiana Freelon

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