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Global economy could lose up to $ 2.7 trillion due to spread of coronavirus, - Bloomberg

Source : 112 Ukraine

If China takes control of the disease, and the country's economy in second quarter copes with consequences caused by the virus, then the impact for the whole world and leading economies will be insignificant
15:47, 8 March 2020

AFP

The global economy could lose up to $ 2.7 trillion due to the spread of coronavirus.

This is stated by experts in a forecast by Bloomberg, which was released on March 7.

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The authors of the study described four possible scenarios of the impact of the disease on the economy. If China, where the disease spread from, takes it under control, and the country's economy in the second quarter copes with the consequences caused by the virus, then the impact for the whole world and leading economies will be insignificant, experts say.

But if the Chinese authorities are unable to cope with Covid-19 and a large outbreak occurs in South Korea, Japan, Germany, Italy and France, then the global economy in 2020 will grow by only 2.3 percent. Before the advent of the new type of virus, Bloomberg predicted economic growth at the rate of 3.1 percent.

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The third scenario provides for the widespread dissemination of the disease in all states where cases of infection were reported in early March. In this case, the ten largest economies in the world will slow down, as they will fight the spread of infection, the researchers said. According to them, global GDP growth will reach 1.2 percent, the eurozone and Japan will face a recession, and unemployment can rise in the United States in the year of the presidential election.

The final option relates to the global Covid-19 pandemic. Due to the lack of growth, the world economy will lose $ 2.7 trillion, and China’s GDP will grow by only 3.5 percent, thereby demonstrating the worst rate since 1980. The US in this scenario also faces a recession that could affect the outcome of the presidential election, Bloomberg experts say.

As we reported before, because of the coronavirus epidemic, the Italian government decided to quarantine and block entry and exit to Lombardy in the north, and another 11 provinces in other regions. The corresponding decree was adopted on Saturday, March 7

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