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Economists estimate losses caused by COVID-19

Economists estimate losses caused by COVID-19

It is too early to provide final estimates of the damage caused by the virus that came from China. However, economists have already prepared the preliminary report. Thus, according to the Asian Development Bank, this year, the global economy may lose from 6 to 9 trillion US dollars that is 6.4%-9.7% of global GDP.

The US, the EU, and China are forecast to suffer more than others. The three giants are responsible for 63% of the world supply-chain imports and 64% of supply-chain exports. Besides, they are the main purchasers of most emerging markets. If the three largest economies slump, this will have an extremely negative influence on other countries. Thus, exporters from Africa are braced for losses that may exceed $2.4 billion due to restrictions in China, the EU, and the US. Over 70% of these losses is caused by disruption of the supply-chain links with the EU alone. In fact, such disruptions could cost as much as $126 billion.

Summing up, more than 55% of all small and medium businesses were badly hit by the coronavirus pandemic. Two-thirds that is about 67% of such enterprises said that the crisis severely affected their business operations. Among the big companies, the share of damaged is less than 40%. 


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