The COVID-19 crisis has exposed major weaknesses in our economies that can only be fixed through greater global co-operation and strong, targeted policy action, according to an OECD report, New Horizons, presented to the G20 Leaders Summit 21-22 November.

With the coronavirus spreading rapidly again, policymakers should plan effective strategies for re-opening their economies while avoiding further re-confinements. This includes more effective testing, tracing and isolation policies, and improved social distancing measures, according to Health at a Glance: Europe 2020.

Despite a sharp fall of 10.6% in real GDP growth per capita in the OECD area in Q2 2020, real household income per capita actually increased by 5.3%, reflecting government support measures in response to the coronavirus crisis. The resulting positive gap of 15.1 percentage points was the largest on record.

Developing countries face a shortfall of USD 1.7 trillion in the financing they need to stay on track for the 2030 Sustainable Development Goals (SDGs), the Global Outlook on Financing for Sustainable Development warns. As well as a gap in public spending, the report points to a drop in private finance from foreign investment and remittances.

Climate finance provided and mobilised by developed countries for developing countries totalled USD 78.9 billion in 2018, up 11% from USD 71.2 billion in 2017. The increase was driven by a rise in public climate finance, while private climate finance was flat, according to Climate Finance Provided and Mobilised by Developed Countries in 2013-18.

The OECD area employment rate–the share of the working-age population with jobs–fell by 4 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons were in employment in the second quarter of 2020, 34 million less than in the previous quarter.