COVID-19: Global economy could witness losses worth up to $8.8 trillion

New Delhi: The global economy is expected to suffer $5.8-8.8 trillion in losses due to the coronavirus pandemic, the Asian Development Bank (ADB) said.

Of this, the impact on South Asian gross domestic product (GDP) will be to the tune of $142-218 billion.

“The global economy could suffer between USD 5.8 trillion and USD 8.8 trillion in losses – equivalent to 6.4 per cent to 9.7 per cent of the global GDP – as a result of the novel coronavirus disease (COVID-19) pandemic,” ADB said in a new report subsequent to its economic outlook released in early April.

The GDP in South Asia will also be lower by 3.9-6%, mainly reflecting the tight restrictions in place in countries like Bangladesh, India and Pakistan, ADB said in its updated assessment of the Potential Economic Impact of COVID-19.

The Manila-headquartered multi-lateral funding agency said that the economic losses in Asia and the Pacific region could range from $1.7 trillion under a short containment scenario of three months to $2.5 trillion under a long containment scenario of 6 months, with the region accounting for about 30% of the overall decline in global output.

The People’s Republic of China (PRC) could suffer losses between $1.1 trillion and $1.6 trillion.

In the Asian Development Outlook (ADO) 2020 published on April 3, the agency had estimated COVID-19’s global cost to range from $2 trillion to $4.1 trillion. Desk: Asianet Online