The Asian Development Bank said global economic losses caused by the Covid-19 pandemic could be between $5.8 trillion and $8.8 trillion this year, more than double its earlier estimates.
The bank’s forecast was worse than April’s projections. The economy globally could suffer losses between $2.0 trillion and $4.1 trillion, the regional development bank said in that month.
While the bottom end assumed curbs would last three months, the ADB said the upper end of the range assumed curbs on movement and businesses lasting six months.
Putting people out of work between 158 million and 242 million, travel restrictions and lockdowns will likely slash global trade by $1.7 trillion to $2.6 trillion, the ADB said. To help combat the pandemic, global central banks have moved aggressively with fiscal stimulus measures and sweeping emergency rate cuts.
