The Asian Development Bank expects that the global economy’s losses due to the outbreak of the Corona virus will reach $ 4 trillion, which equals 2.3 to 4,8% of the total output. Global Local.
According to Abaya Net, the organization explained, in a report published by it, that the estimates may be less than reality, as they do not take into consideration the potential social and financial crises as well as the impact of the epidemic on health and educational systems in the long term.
The number of people infected with Covid disease-19 Thursday exceeded the threshold of a million around the world, while the number of deaths exceeded 52 thousand.
According to the bank, the growth rate in Asia is expected to record 2.2% this year, at the slowest pace recorded since 1998, when growth did not exceed the 1.7% threshold due to the Asian financial crisis, according to Agence France-Presse.
No one can anticipate the extent or duration of the Covid-19 pandemic, explaining that the possibility of a serious financial crisis cannot be ruled out, said Yasuyuki Sawada, chief economist of the Asian Development Bank.
The forecast is based on the fact that the virus will be brought under control this year and the situation will return to normal in the next year, although the possibility of renewal of the virus is not excluded and its level of severity is still unknown.
The report warned that the results could be worse than expected and that growth rates do not recover quickly.
The rate of growth in China, the major economic power in Asia, could slow by 2.3% this year, compared to 6.1% in 2019, before recovering in 2021.
According to the report, the epidemic caused a shock at the level of demand because people stayed in their homes.
This reflected a shock at the supply level, as companies suffer from a shortage of labor ... and a shortage of materials with the collapse of supply networks.
