The Asian Development Bank (ADB) predicted that the world economy will have a greater impact by the coronavirus pandemic contrary to what was initially thought.
By MiamiDiario Newsroom
“The estimated impact could be an underestimate, since additional channels such as supply disruptions, interrupted remittances, possible social crises and financial and long-term effects on health care and education are excluded from the analysis," says the ADB's annual economic report.
This year is considered as the darkest scenario with the impact of the "worst pandemic in a century" estimated to be as high as $4.1 trillion, or 4.8% of global gross domestic product (GDP).
Growth in Asia is estimated to most likely fall to 2,2% in 2020, more than halving last year's growth of 5,2%.
For its part, China, the largest economy in the region, registered double-digit contractions in business activity in January-February and will almost certainly see its growth fall to 2.3% this year, against the 6,1% registered in 2019. .
For the eurozone, made up of 19 countries, it is expected that the annualized rate of GDP is approximately 10%.
The United States also does not present an encouraging picture since the automobile industry is completely closed and the airlines expect a positive response from a package of 25.000 million dollars in federal subsidies to cover their payroll costs for six months.
With information from the Voice of America
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