ADB Said Coronavirus could inflict up to $8.8 trillion losses in the global economy:
The Asian Development Bank (ADB) has projected the global economy to lose up to $8.8 trillion due to the effects of Covid-19 caused by the coronavirus. This is more than twice the ADB's own projection last month.
The new projection is based on an update from the ADB headquarters in Manila on the potential impact of the Kovid-19 epidemic on the economy. The report states that the minimum loss will be between $ 5.8 trillion and a maximum between $ 8.8 trillion.
The current projection of Covid-19 is projected to have a three-month and six-month economic impact, ranging from a maximum of 6.5 percent to 9.7 percent of global economic output.
According to the report, the three-month short-term situation in Asia and the Pacific will cost between $1.7 trillion and $2.5 trillion and China between $1.1 trillion and $1.6 trillion.
ADB chief economist Yasuyuki Sawada said the report paints a picture of the impact of the epidemic on the global economy. It also highlights the importance of policies needed to reduce its impact on the economy, he said.
The report states that the assistance provided by governments will be useful in mitigating the economic impact. The ADB estimates that it could reduce the impact by 30 to 40 percent, at a cost of $4.1 trillion dollars to $5.4 trillion.
Central banks around the world are now aggressively cutting interest rates amid fears of a global financial crisis. In addition, the process of bringing the relief package is also underway.
