Bank forecasts economic toll from coronavirus may top $4T globally

Bank forecasts economic toll from coronavirus may top $4T globally

The Asian Development Bank (ADB) said on Friday that the coronavirus pandemic could cost the global economy up to $4.1 trillion depending on how long it lasts, according to the lender’s 2020 outlook report.

The $4.1 trillion could translate into the world’s gross domestic product dropping anywhere from 2.3 to 4.8 percent.

“The evolution of the global pandemic—and thus the outlook for the global and regional economy—is highly uncertain. Growth could turn out lower, and the recovery slower, than we are currently forecasting. For this reason, strong and coordinated efforts are needed to contain the COVID-19 pandemic and minimize its economic impact, especially on the most vulnerable,” ADB chief economist Yasuyuki Sawada said in a statement.

The regional bank said that 2020 growth for the region was likely to fall to 2.2 percent because of the pandemic but projects that it will rebound with growth of 6.2 percent in 2021, assuming that the pandemic has been contained.

China’s expected 2020 growth fell to 2.3 percent due to the outbreak, but the ADB expects the regional leader to bounce back strongly in 2021 with growth of 7.3 percent.