ADB: Coronavirus could inflict up to $8.8 trillion losses in global economy

In the latest report that followed its economic outlook released in early April, Asian Development Bank (ADB) said on Friday, the coronavirus pandemic is likely to erode nearly $9 trillion off the global GDP.

Key takeaways

“The impact on south Asian gross domestic product (GDP) will be to the tune of $142-218 billion.”

“The global economy could suffer between $5.8 trillion and $8.8 trillion in losses – equivalent to 6.4 percent to 9.7 percent of the global GDP – as a result of the novel coronavirus disease (COVID-19) pandemic.” 

“The People’s Republic of China (PRC) could suffer losses between $1.1 trillion and $1.6 trillion.”

“Its new analysis which expects the global impact of $5.8-8.8 trillion is excluding the impact of policy measures.”

“This could reduce global economic losses due to the pandemic to between $4.1 trillion and $5.4 trillion.” 

“On the impact on wage incomes due to the pandemics, expects it to fall globally especially in the US, the EU, and the UK.”

“Globally, labour income will drop between $1.2 trillion to $1.8 trillion. For Asia, the decline in wage income will range from $359 billion to $550 billion – or about 30 per cent of the global drop in wage income.”