The cost of the coronavirus pandemic could reach as much as $8.8 trillion, or almost 10% of global gross domestic product, and between 158 million to 242 million jobs could be lost globally, with 70% of those in Asia and the Pacific, according to the ADB.
The report, Updated Assessment of the Potential Economic Impact of COVID-19, finds that economic losses in Asia and the Pacific could range from $1.7 trillion under a short containment scenario of 3 months to $2.5 trillion under a long containment scenario of 6 months, with the region accounting for about 30% of the overall decline in global output.
Economic losses in Southeast Asia could range between $163.2 and $252.9 billion depending on the containment scenario.
Under the short and long containment scenarios, the report notes that border closures, travel restrictions, and lockdowns that outbreak-affected economies implemented to arrest the spread of COVID-19 will likely cut global trade by $1.7 trillion to $2.6 trillion.
Global employment decline will be between 158 million and 242 million jobs, with Asia and the Pacific comprising 70% of total employment losses.
Labor income around the world will decline by $1.2 trillion to $1.8 trillion—30% of which will be felt by economies in the Asia and the Pacific region, or between $359 billion and $550 billion.
“This new analysis presents a broad picture of the very significant potential economic impact of COVID-19,” said ADB Chief Economist Yasuyuki Sawada. “It also highlights the important role policy interventions can play to help mitigate damage to economies. These findings can provide governments with a relevant policy guide as they develop and implement measures to contain and suppress the pandemic, and lessen its impacts on their economies and people.”
Subscribe via Email
UN outlines path to sustainable recovery in Southeast Asia
Tackling inequality, bridging the digital divide, greening the economy, and upholding human rights and good governance will be critical for...
Creating Long Term Growth in Thailand Post- Covid-19
Key mechanisms to position Thailand as the premier destination for investment include regulatory predictability and transparency as well as competitive...
Thailand’s COVID-19 response: an example of resilience and solidarity
Gita Sabharwal, the UN Resident Coordinator in Thailand, explains COVID-19 response success in the country thanks to a combination of...
Thailand’s GDP to shrink from 9.4 to 11.4 percent
The Thai Chamber of Commerce (UTCC) has predicted that the Thai GDP this year will shrink between 9.4 to 11.4...
Covid-19: Thailand reports 10 weeks without local transmission
According to the Centre for Covid-19 Situation Administration (CCSA), Thailand has recorded zero new locally-contracted cases for 10 weeks.
Thai economy improved in June says Bank of Thailand
In June 2020, the Thai economy improved from the previous month due to the gradual relaxation of lockdown measures both...