The OECD Interim Economic Outlook released on Wednesday said the global economy is expected to contract by four.five percent.
An improvement of one.five percentage point from the previous projection with businesses re-opening in major economies.
"Everything needs to be done to strengthen confidence, that's really, really key to the recovery, and to make it faster and larger."
The revision is mostly due to sizeable, projected improvement in the United States and China.
The U.S. economy is forecast to contract by three.eight percent this yearan upward revision by three.five percentage points from seven.three percent.
This was helped by the Federal Reserve adopting monetary easing policies to boost the economy and by providing additional fiscal support.
China is the only G20 country with an economy that is projected to expandat one.eight percent in 2020.
The report said that the upward revision is due to an earlier coronavirus outbreak and government policies enabling a quick economic rebound.
Among all OECD countries, the South Korean economy is projected to be hit by the pandemic the least, with an economic contraction of one percent this year.
That's a cut of two tenths of a percent from the latest projection made in August but is the strongest performance among the 37 OECD member nationsand would rank second among the G-20 countries behind China.
"The government's fiscal policies and supplementary budgets, as well as its ability to curb the spread of the virus, has limited the downward revision in the economic growth."
The report said South Korea's private consumption in the second quarter of 2020 was hurt the least, adding that nations which experienced the largest cutbacks in household consumption saw the greatest declines.
The same report said that further fiscal, monetary and structural support policies should be maintained globally in order to limit economic uncertainty.
Eum Ji-young Arirang News.