The world bank has on Monday warned that the Covid-19 may worsen the economic situation in the world. The international bank has warned that 11 million people in the East Asia will be pushed to poverty and the growth of China will come to a standstill.
The chief economist for East Asia and the Pacific of World Bank, Aaditya Mattoo called the Covid-19 pandemic as “an unprecedented global shock. He said that the coronavirus outbreak could bring growth to a halt and could increase poverty across the region.
Earlier two months ago, the economists from the World Bank predicted that China would grow by 5.9% this year, which would have been its worst performance since 1990. Now after the Covid-19 pandemic it is forecasted as China’s expansion slowing to 2.3% from 6.1% in 2019.
The East Asia and Pacific region, excluding China, could see growth slow to 1.3% in the baseline or contract 2.8% in the more pessimistic scenario as compared to 5.8% last year, the report by World Bank said.
Mattoo said the 17 countries in the region key to global value chains and accounting for 70% of world trade “have all been affected” and now have some of the world’s highest numbers of Covid-19 cases.
Post Your Comments