Global damage from coronavirus could reach $ 4.1 trillion

US, WASHINGTON (ORDO NEWS) — The global cost of a coronavirus pandemic can be up to $ 4.1 trillion, or nearly 5% of global GDP, depending on the extent of COVID-19, the Asian Development Bank (ADB) said. It is reported by Bloomberg .

With a smaller pandemic, the damage could amount to $ 2 trillion, or 2.3% of global GDP, the ADB report said Friday. The bank estimates that developing countries in Asia, including China, account for between 22% and 36% of the total costs associated with coronavirus.

“No one can say how widespread the COVID-19 pandemic can be and the containment may take longer than is currently projected,” said ADB chief economist Yasuyuki Savada. “One should not discount the possibility of serious financial shocks and financial crises.”

ADB lowered its forecast for economic growth in Asia for 2020 to 2.2% from 5.5% expected in September last year. The forecast for China has been reduced to 2.3% from 6%.

Inflation is likely to accelerate this year due to rising food prices, despite weakening economic activity and falling commodity prices, ADB warned.

The United Nations this week called for $ 2.5 trillion to be allocated to developing countries to help them deal with the effects of the coronavirus pandemic.

The United Nations Conference on Trade and Development (UNCTAD) noted that in the two months since the coronavirus began to spread outside of China, developing countries received a “huge blow” from capital flight, rising interest rates on their debts, and falling national currencies. and loss of export earnings.

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