ADB warns coronavirus threatens to chop 10% off global output

Bank says fiscal and monetary responses needed immediately to soften fallout

With exports and domestic consumption crashing, China, the world's second largest economy, could be on course for losses of up to $1.6 trillion this year, according to the ADB. © Reuters

CLIFF VENZON, Nikkei staff writer

May 15, 2020 10:33 JST

MANILA -- The COVID-19 pandemic threatens to lop off up to a tenth of the global economy, according to a study released Friday by the Asian Development Bank that suggests the disaster is likely to be even more devastating than previously expected.

The ADB, a multilateral lender based in Manila, said on Friday that the virus could cost the global economy between $5.8 trillion and $8.8 trillion, or 6.4% to 9.7% of its total output. The loss estimates are significantly higher than the $2 trillion to $4.1 trillion the ADB predicted on April 3.