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Global economy to fall by 9.7 percent due to COVID-19, says ABD

Manila, May 15 (efe-epa).- The global economy will plummet this year by around 6.4 percent to 9.7 percent due to crisis generated by the COVID-19 pandemic, according to forecasts by the Asian Development Bank (ADB) on Friday.

Losses will range from $5.8 trillion to $8.8 trillion, or 6.4 – 9.7 percent of the global gross domestic product (GDP), said a report by the Manila-based credit institution on the impact of the pandemic.

The ADB report reviewed its earlier forecast in early April, when it estimated that the overall cost of COVID-19 would range from $2 trillion to $4.1 trillion, or 2.3 – 4.8 percent of the global GDP.

According to the report, the economic impact on the Asia-Pacific region will amount to $1.7 trillion in a three-month containment scenario and $2.5 trillion on a six-month scenario.

The region represented 30 percent of the overall decline in world production, particularly over the impact in China – which accounts for a large part of the world’s manufacturing – where economic losses are expected to touch $1.6 trillion.

“Governments around the world have been quick in responding to the impacts of the pandemic, implementing measures such as fiscal and monetary easing, increased health spending, and direct support to cover losses,” said the ABD report.

These measures could soften the economic impact of COVID-19 by up to 40 percent, mitigating global economic losses from the pandemic by up to $5.4 trillion.

This report, covering 96 outbreak-affected economies totaling more than four million COVID-19 cases, underlined that global trade would reduce by $1.7 trillion to $2.6 trillion; and between 158 million and 242 million jobs would be lost in 2020, 70 percent of them in Asia and the Pacific.

Established in 1966 with the aim of achieving a prosperous, inclusive and sustainable Asia-Pacific region, the ADB has 68 members, 49 of which are countries from the region. EFE-EPA

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