OECD lowers 2020 global economic growth forecast to 2.4% from 2.9% prior

The Organisation for Economic Co-Operation and Development (OCED) lowered its global economic growth forecast for 2020 to 2.4% from 2.9% reported in November amid the coronavirus outbreak, as reported by Reuters.

The OECD also slashed its growth forecast for G20 to 2.7% from 3.2%.

Risk aversion

Although markets started the week on a relatively upbeat tone, risk-aversion seems to be returning. As of writing, the 10-year US Treasury bond yield was down 5.8% on the day and major European equity indexes, with the exception of the UK's FTSE 100, were posting modest losses.

Key takeaways

"OECD sees Chinese economic growth of 4.9% in 2020, down 0.8 percentage points."

"OECD sees US Economic growth of 1.9% in 2020, down 0.1 percentage points."

"OECD sees eurozone growth of 0.8% in 2020, down 0.3 percentage points."

"OECD sees Japanese growth of 0.2% in 2020, down 0.4 percentage points."

"OECD sees UK growth of 0.8% in 2020, down 0.2 percentage points."