It is predicted that COVID-19 will cause the global economy to suffer between $5.8 trillion and $8.8 trillion in losses – equivalent to 6.4% to 9.7% of global gross domestic product (GDP), according to an updated reported released today by the Asian Development Bank (ADB).
The new report also outlines that Asia and the Pacific – encompassing Cambodia – will be worst hit for job losses, estimating the region will account for 70% of total employment losses around the world, as global job losses are predicted to decline between 158 million and 242 million.
While economic losses in Asia and the Pacific could range from $1.7 trillion under a short containment scenario of 3 months to $2.5 trillion under a long containment scenario of 6 months, with the region accounting for about 30% of the overall decline in global output.
ADB Chief Economist Yasuyuki Sawada said, “This new analysis presents a broad picture of the very significant potential economic impact of COVID-19.”
“It also highlights the important role policy interventions can play to help mitigate damage to economies. These findings can provide governments with a relevant policy guide as they develop and implement measures to contain and suppress the pandemic, and lessen its impacts on their economies and people,” he added.
In April, ADB’s Country Director for Cambodia, Sunniya Durrani-Jamal said, “Cambodia’s economic growth is expected to drop to 2.3% then rebound to 5.7% in 2021, assuming that the pandemic ends and economic activity normalises,”
She noted further, “Facing unprecedented challenges posed by COVID-19, the Royal Government of Cambodia has taken the right steps to respond to the crisis, including providing wage support for garment workers and tax and credit relief for businesses. The government has also created the fiscal space to minimize the economic impact of this crisis, especially on the most vulnerable people.”
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.