Global impact could reach $5.8 trillion: South Asia GDP to be lower by 3.9 percent to 6 percent: ADB

The gross domestic product (GDP) in South Asia will be lower by $142 billion to $218 billion (3.9 percent to six percent), mainly reflecting the tight restrictions in place in countries such as Bangladesh, India, and Pakistan, says the Asian Development Bank (ADB).

The ADB in its latest brief, "An Updated Assessment of the Economic Impact of COVID-19," stated that the global economic impact of the COVID-19 could reach $5.8 trillion (6.4 percent of the global GDP) under a three-month containment scenario, and $8.8 trillion (9.7 percent of global GDP) under a six-month containment scenario.

The report stated that under the two scenarios, output in East Asia excluding the PRC will be down by $164 billion to $257 billion (six percent to 9.3 percent of the sub-region's GDP) and between $163 billion and $253 billion (4.6 percent to 7.2 percent) in Southeast Asia.

The effects in these regions reflect their larger trade and tourism shares relative to the GDP.

The GDP in South Asia will also be lower by $142 billion to $218 billion (3.9 percent to six percent), mainly reflecting the tight restrictions in place in countries such as Bangladesh, India, and Pakistan.

The brief highlights that policy interventions could reduce the impact of the COVID-19 by 30 percent under the short containment scenario, and by 40 percent under the long containment scenario.

It notes that strong income and employment protection are crucial.