THE UK economy is set to be the hardest hit by coronavirus among the world's developed countries, according to the Organisation for Economic Co-operation and Development (OECD).

In its latest global economic outlook, the OECD predicted Britain's economy was likely to slump by 11.5% in 2020.

The OECD expects the world economy to contract by 6%, with all countries suffering a deep recession and cautioned that the recovery will be slow.

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A double-hit scenario where there is a second wave of Covid-19 would see global GDP drop by 7.6% and the recovery would be even slower next year, added the OECD.

Brazil, the US and Sweden are on course for GDP falls of 7.4% or less, the OECD said, while China is expected to drop by 2.6% and Russia 8%.

The UK's GDP fall would also outstrip decreases in Germany (6.6%) Spain (11.1%), Italy (11.3%) and France (11.4%). 

If a second lockdown is needed in the UK GDP could fall by 14%.

Considering both the 11.5% and 14% drops predicted, Laurence Boone, the OECD’s chief economist, said: “These scenarios are by no means exhaustive, but they help frame the field of possibilities and sharpen policies to walk such uncharted grounds. Both scenarios are sobering, as economic activity does not and cannot return to normal under these circumstances.

“By the end of 2021, the loss of income exceeds that of any previous recession over the last 100 years outside wartime, with dire and long-lasting consequences for people, firms and governments.

“Global cooperation to tackle the virus with a treatment and vaccine and a broader resumption of multilateral dialogue will be key for reducing doubt and unlock economic momentum."