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money and business
Reuters
On Friday, the Asian Development Bank (ADB) expected losses from the economic crisis caused by the emerging Corona Virus to exceed $ 8 trillion.
And the bank suggested that losses range from twice the previous estimates, that is, between 5.8 and 8.8 trillion dollars, that is, twice the previous estimates of the losses resulting from the measures of social isolation. followed around the world to limit the spread of the virus.
The Manila-based bank said in its report on Friday that a shorter three-month containment period, coupled with stringent policy measures, could limit the impact to $ 4.1 trillion, or 4.5% of world production.
The Asia Pacific region is expected to account for about 30% of the overall decline in world production.
Yasuyuki Sawada, chief economist at the Asian Development Bank, said in a statement that the analysis “highlights the important role that political interventions can play in helping to mitigate the damage caused to economies.”
These expected losses are worse than expectations announced last April, as the bank suggested losses range between $ 2 trillion and $ 4.1 trillion, depending on the period of time during which the isolation measures may be extended.
Analysts at the bank noted that the highest value of losses was set according to the possibility for authorities to impose measures to shut down the economy worldwide for a period of six months, while the lowest value indicates isolation measures. over a period of three months.
After the spread of the virus in China since last December, world economies froze amid measures to halt flights and close factories, restaurants and hotels, in addition to imposing measures of social isolation.
The bank expected Asian losses to reach between $ 1.7 and $ 2.5 trillion, while China’s losses would range from $ 1.1 to $ 1.6 trillion, according to the bank.
As for the losses of the air transport sector, they will range between 1.7 trillion and 2.6 trillion dollars, and the virus causes a loss between 158 million people and 242 million jobs.
Source: Reuters + Bloomberg
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