The Organization for Economic Cooperation and Development cut its estimate for global economic growth for 2020 on Monday, amid the worldwide spread of the COVID-19 coronavirus.

The Paris-based organization projects the rate of global gross domestic product growth to be 2.4 pct in real terms, down 0.5 percentage point from the previous November estimate.

The OECD also lowered its GDP growth forecast for Japan by 0.4 point to 0.2 pct and that for China, where the coronavirus outbreak began, by 0.8 point to 4.9 pct.

 The latest estimate for global growth was based "on the assumption that the epidemic peaks in China in the first quarter of 2020 and outbreaks in other countries prove mild and contained," the OECD said.

The organization expects the rate of global growth to drop to around 1.4 pct in the event that the coronavirus outbreak expands further and lasts longer.

The outbreak has affected manufacturers through supply chain disruption, as well as tourism.

The OECD said China "plays a far greater role in global output, trade, tourism and commodity markets" than in the past, boosting the level of its influence on other countries.

"Even if the peak of the outbreak proved short-lived, with a gradual recovery in output and demand over the next few months, it will still exert a substantial drag on global growth in 2020," it said.

JIJI Press