ADB sees 'significant' coronavirus impact on Developing Asia

ABS-CBN News

Posted at Mar 06 2020 11:44 AM | Updated as of Mar 06 2020 04:13 PM

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MANILA – The coronavirus outbreak could have a "significant" impact on Developing Asia, as it slows travel, tourism, consumption and supply chains, the Asian Development Bank said Friday.

The global economy could lose up to $347 billion in a worse case and $156 billion in a moderate case and $77 billion under the best scenario, the Manila-based lender said.

Loses under a moderate case, where travel bans start easing in 3 months, could account for 0.2 percent of global gross domestic product, the ADB said.

China, where the virus originated, could account for $103 billion of losses under the moderate scenario, while the rest of Developing Asia could lose $22 billion.

"We hope this analysis can support governments as they prepare clear and decisive responses to mitigate the human and economic impacts of this outbreak," said ADB chief economist Yasuyuki Sawada.

President Rodrigo Duterte's economic team "will recommend appropriate measures in due time" to counter the economic fallout from the outbreak, Budget Secretary Wendel Avisado earlier said. 

Bangko Sentral ng Pilipinas Governor Benjamin Diokno also signaled deeper cuts to the benchmark interest rate of up to 75 basis points this year, instead of 50. 

The ADB has announced millions in aid to enhance detection, prevention and response to the global outbreak that has infected over 93,000. 

-- with a report from Reuters