Rich Countries Set to Recover More Quickly From Covid-19 Contractions

By Paul Hannon 

China and other rich countries will suffer less economic damage from the coronavirus pandemic than previously feared, according to the Organization for Economic Cooperation and Development, but the global public health emergency will exact a higher toll on the economies of poor countries.

The Paris-based research body Wednesday said the global economy will contract less sharply this year than it thought likely in June, but warned that the recovery is set to slow from this month and remain vulnerable to fresh outbreaks. The OECD doesn’t expect a vaccine to be widely available until the end of next year.

“Momentum appears to be plateauing and confidence remains weak,” said Laurence Boone, the OECD’s chief economist.

In the latest of its quarterly reports on the global economy, the research body said it now expects the U.S. economy to shrink by 3.8% this year, having forecast a decline of 7.3%

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