The Asian Development Bank (ADB) on Friday said that the coronavirus pandemic could cost the global economy about $4.1 trillion.
“The global cost of the pandemic could range from $2.0 trillion to $4.1 trillion, equivalent to a loss of between 2.3 per cent to 4.8 per cent of global gross domestic product,” the organization added in a statement.
According to the ADB’s report ‘Asian Development Outlook 2020,’ the coronavirus pandemic could lead to a sharp decline of the regional economic growth in developing Asia.
“The report forecasts regional growth of 2.2 per cent in 2020, a downward revision of 3.3 percentage points relative to the 5.5 per cent ADB had forecast in September 2019. Growth is expected to rebound to 6.2 per cent in 2021, assuming that the outbreak ends and activity normalizes,” ADB said.
“ Excluding the newly industrialized economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei,China, developing Asia is forecast to grow 2.4 per centthis year, compared to 5.7per cent in 2019, before rebounding to 6.7 per cent next year,” it added.
According to the ADB,all of developing Asia’s subregions will see growth weaken this year because of weak global demand, and in some economies because of domestic outbreaks and containment policies.
“In India, measures to contain the spread of the virus and a weaker global environment this year will offset the benefits from recent tax cuts and financial sector reforms. Growth in India is forecast to slow to 4.0 per cent in fiscal year (FY) 2020 before strengthening to 6.2 per cent in FY2021,” it added.