Global economy to shrink 1.5 percent in 2020 - OPEC

The Organization of the Petroleum Exporting Countries (OPEC) expects the global economy to contract by 1.5 percent in 2020 and "face a severe recession." In its Monthly Oil Market Report for April 2020, OPEC attributed the decline to the novel coronavirus pandemic.

Among the members of The Organisation for Economic Co-operation and Development (OECD), the United States GDP is expected to drop by 4.1 percent in 2020, after recording a growth of 2.3 percent during the year prior. OPEC sees the Eurozone economic activity declining by 6 percent this year, following a 1.2 percent growth in 2019.

Japan's 2020 economy is estimated to shrink by 3.9 percent and China's GDP is still seen as growing by 1.5 percent. The Russian economy is expected to contract by 0.5 percent, "not only due to COVID-19, but also because of the considerable decline in oil prices," OPEC noted.OPEC revealed that its global oil demand growth forecast for 2020 has been revised down by 6.9 million barrels per day (bpd), "to a historical drop of around 6.8 million bpd."

Second-quarter demand is estimated to fall by 12 million bpd, with April's expected decline amounting to 20 million bpd, according to the report.