As a result of the novel coronavirus disease (COVID-19) pandemic the global economy could fall between $ 5.8 trillion and 8.8 trillion in losses which is equivalent to 6.4% to 9.7% of global gross domestic product (GDP), The Asian Development Bank (ADB) said in a new report released this month.
The report, Updated Assessment of the Potential Economic Impact of COVID-19, It has been found that economic losses in Asia and the Pacific can range from 1.7 trillion 3 months under a short-term organization to $ 2.8 trillion under 6 month-long containment, accounting for about 30% of output declines worldwide.
Governments around the world have taken swift action to respond to the effects of the epidemic, implementing measures such as financial and monetary easing, increasing health spending, and direct assistance to cover the loss of income and earnings. Sustainable efforts by governments focused on these measures could soften the economic impact of COVID-19 by 30% to 40%, the report said. It could reduce the global economic loss caused by the epidemic from $ 4.1 trillion to 5.4 trillion.
The analysis, which uses a Global Trade Analysis Project-computable general equilibrium model, covers 96 outbreak-affected economies with over 4 million COVID-19 cases. In addition to shocks to tourism, consumption, investment, and trade and production linkages covered in the ADO 2020 estimates, the new report includes transmission channels such as the increase in trade costs affecting mobility, tourism, and other industries; supply-side disruptions that adversely affect output and investment; and government policy responses that mitigate the effects of COVID-19’s global economic impact.
