March 27, 2020 / 10:50 AM / 2 months ago

Each month of lockdown in major economies to shave two percentage points off growth: OECD

Organisation for Economic Co-operation and Development (OECD) Secretary General Angel Gurria attends a news conference after a meeting at the Chancellery in Berlin, Germany October 1, 2019. REUTERS/Hannibal Hanschke

PARIS (Reuters) - Each month major economies spend in lockdown will knock 2 percentage points off annual growth, the Organisation for Economic Cooperation and Development said on Friday.

“Our latest estimates show the lockdown will directly affect sectors amounting to up to one third of GDP in the major economies,” OECD Angel Gurria said in remarks to G20 leaders on Thursday but which were made public on Friday.

“We calculate that, for each month of containment, there will be a loss of 2 percentage points in annual GDP growth. The tourism sector alone faces a decrease in output anywhere between 50% to 70% in this period. Many economies will fall into recession,” he added.

Reporting by Leigh Thomas; Editing by Alison Williams

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