COVID-19 could cut global growth by 0.1% to 0.4%, says ADB

The global spread of the novel coronavirus has crushed hopes for stronger growth this year.

South Korean soldiers wearing protective gear spray disinfectant on the street to help prevent spread of COVID-19, in Seoul on March 6, 2020.

The Asian Development Bank (ADB) said on Friday the COVID-19 outbreak is set to trim economic growth in developing Asia and around the world this year.

More than 3,200 people worldwide have died from the respiratory illness that can lead to pneumonia, hurting financial markets and damaging economies.

The outbreak could slash global gross domestic product by 0.1 to 0.4%, with financial losses forecast to reach between $77 billion and $347 billion, the Manila-based lender said.

Economic growth in China and developing Asia, excluding China, could be trimmed by 0.3 to 1.7% and 0.2 to 0.5%, respectively, the ADB said in an analysis that outlined best- and worst-case scenarios.

The ADB said the COVID-19 outbreak could lead to sharp declines in domestic demand, tourism and business travel, trade and production linkages, supply disruptions, hurting growth in developing Asia.

The global spread of the novel coronavirus has crushed hopes for stronger growth this year and will hold 2020 global output gains to their slowest pace since the 2008-2009 financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday.

The World Bank has said it was providing $12 billion in immediate funds to help developing countries improve their health services, disease surveillance, access to medical supplies and working capital for businesses.