Coronavirus to have significant economic impact on developing Asian countries: ADB.

Byline: Tahir Sherani

A new study released by the The Asian Development Bank (ADB) on Friday suggests that coronavirus will have a significant impact on developing Asian economies through numerous channels.

Sharp declines in domestic demand, lower tourism and business travel, trade and production linkages, supply disruptions, and health effects are expected - depending on how the virus evolves, a press release from the ADB said.

According to the ADB, the magnitude of the economic losses will depend on how the outbreak evolves, which remains highly uncertain.

The range of scenarios explored in the analysis suggests a global impact in the range of $77 billion to $347 billion, or 0.1 per cent to 0.4pc of global gross domestic product (GDP).

The ADB suggests that in a moderate scenario, where precautionary behaviours and restrictions such as travel bans start easing 3 months after the outbreak intensified and restrictions were imposed in late January, global losses could reach $156 billion, or 0.2pc of global GDP.

China would account for $103 billion of those losses - or 0.8 of its GDP. The rest of developing Asia would lose $22 billion, or 0.2pc of its GDP.

'There are many uncertainties about COVID-19, including its economic impact,' said ADB Chief Economist...