Asian Development: Corona may shrink global output 0.1-0.4%


A woman wears a muzzle, walking down the Shanghai Street on Thursday. Photography: Ali Sung-Reuters

MANILA (Reuters) – The Asian Development Bank (ADB) said on Friday that an outbreak of the Coruna virus would reduce economic growth in developing Asia and around the world this year.

Respiratory disease that can develop pneumonia has killed more than 3,200 people worldwide and affected global markets and economies.

The Manila-based bank said the spread of the virus could reduce global gross output between 0.1 and 0.4 percent, with financial losses expected to reach between 77 and 347 billion dollars.

In an analysis that included the best and worst possible scenarios, the bank said that economic growth may shrink between 0.3 and 1.7 percent in China and between 0.2 and 0.5 percent in developing Asia except for China.

The Asian Development Bank said the spread of the Corona virus could lead to sharp declines in domestic demand, tourism, business and trade trips, and production links as well as disrupting supplies, which would hurt growth in Asia.

The global spread of the new coronavirus has dashed hopes for stronger growth this year and global output growth in 2020 will be slowed to its lowest pace since the financial crisis in 2008 and 2009, Kristalina Georgieva, director of the International Monetary Fund, said on Wednesday.

The World Bank says it provides $ 12 billion in emergency financing to help developing countries improve health services, monitor disease, and provide medical supplies and working capital for companies.

Press coverage by Neil Jerome Morales and Karen Lima – Prepared by Ahmed Elhamy for the Arabic Bulletin


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