The OECD has projected that the US economy could shrink by 3.8 per cent, while the Euro area could contract by 7.9 per cent in 2020. b. The world economy is projected to recover in 2021, with an estimated growth of 5.0 per cent.
The first factor to mention is the recent escalation in trade conflicts between the US and China, with both nations announcing an increase in tariffs on a broader range of goods than initially targeted.