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China to account for $103 billion of the global losses.

COVID-19 likely to have $347bn economic impact, says study

MANILA , March 7, 2020

The ongoing novel coronavirus (COVID-19) outbreak could have a global economic impact in the range of $77 billion to $347 billion, or 0.1 per cent to 0.4 per cent of global gross domestic product (GDP), said the Asian Development Bank (ADB) in a new report.
 
The outbreak will have a significant impact on developing Asian economies through numerous channels, including sharp declines in domestic demand, lower tourism and business travel, trade and production linkages, supply disruptions, and health effects, added the analysis titled “The Economic Impact of the COVID-19 Outbreak on Developing Asia”.
 
In a moderate scenario, where precautionary behaviours and restrictions such as travel bans start easing three months after the outbreak intensified and restrictions were imposed in late January, global losses could reach $156 billion, or 0.2 per cent of global GDP.
 
China would account for $103 billion of those losses—or 0.8 per cent of its GDP, the report said, adding that the rest of developing Asia would lose $22 billion, or 0.2 per cent of its GDP.
 
“There are many uncertainties about COVID-19, including its economic impact,” said Yasuyuki Sawada, chief economist at ADB. “This requires the use of multiple scenarios to provide a clearer picture of potential losses. We hope this analysis can support governments as they prepare clear and decisive responses to mitigate the human and economic impacts of this outbreak.” – TradeArabia News Service



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