The global economic downturn will be smaller than forecast due to the countries' stimulus measures, says the OECD.

The OECD now estimates that the world economy will shrink by 4.5 per cent this year and grow by 5 per cent next year.

In its June forecast, the OECD estimates that this year's contraction will be 6 per cent and next year's growth 5.2 per cent.

Eurozone readings look gloomier than the global forecast.

The OECD forecasts that the eurozone economies will shrink by 7.9 percent this year.

As a result of stimulus measures by central banks and governments, private consumption has recovered, although demand for services remains weak.

Corporate investment and international trade also remain subdued.

The outlook for the global economy remains highly uncertain and growth will depend, inter alia, on the progression of the virus, the extent of containment measures, the timing of the coronary vaccine and the continuation of recovery.

The OECD now says it has raised growth forecasts for China, the United States and Europe, but lowered forecasts for India, Mexico and South Africa.

China is the only G20 country where the economy is growing this year.

The Chinese economy is forecast to grow 1.8 percent this year and 8.0 percent next year.

The U.S. economy will shrink 3.8 percent this year, but grow 3.5 percent next year.

The eurozone economy will shrink by 7.9 per cent this year, from which it will drive modest growth of 1.2 per cent next year.

Germany's European economic locomotive's GDP is forecast to shrink by 5.4 percent this year.

Next year, growth will be 1.2 percent.

The French economy, the second economic power, will shrink by 9.5 per cent this year and grow by 1.9 per cent next year.