ADB (Asian Development Bank), a Manila-based financial institution, warned yesterday that the global economic impact of COVID-19 could reach up to $4.1 trillion. An amount equivalent to 5% of world GDP.
It is important to note that the report includes only the direct effects on investment, tourism and consumption and does not include side effects such as the long-term effects on health care and education.
ADB notes that in order to have the aforementioned worst case scenario, it will depend on the spread of the disease in Europe, USA and other major economies.
#ADO2020 NEWS: Economic growth in developing Asia will take a beating from the #COVID19 global pandemic. GDP will slow to 2.2% in 2020, but will rebound to 6.2% in 2021 once outbreak is contained – ADB Chief Economist @yasusawada
— Asian Development Bank (@ADB_HQ) April 3, 2020
About a month ago, ADB predicted that the cost to the global economy due to COVID 19 would be as high as $ 347 billion, having downgraded growth forecasts by just 0.4 percentage points.
Since then, the focus of Covid-19 has shifted from China to Europe and the United States, with more than a million cases worldwide.
According to ADB in its report on economic outlook, a shorter period of exacerbation of COVID 19 could reduce the damage from 4.1 trillion dollars to 2 trillion. or 2.3% of global GDP,
Yasuyuki Sawada, ADB chief economist said:
“No one can say how widely the COVID-19 pandemic may spread, and containment may take longer than currently projected,”