The OECD forecasts the world economy will shrink far faster than originally expected, sending unemployment soaring and highlighting the need for extra steps to halt the crisis.
The body now sees world growth falling -4.3% in 2009, way below its last official forecast of -0.4%, but in line with a broad figure given by General Secretary Gurria Monday.
Stimulus measures taken so far are expected to stop the world from seeing a repeat of the 1930s Great Depression and growth should return in 2010.
But there are substantial risks to downside and central banks and governments need to use room they have for more aggressive policy.
The OECD urges the ECB to cut its main policy rate further from 1.5% and said it should commit to the quantitative easing hinted at by the banks’ policy makers in recent days.
