WASHINGTON: The coronavirus pandemic’s economic fallout could cause China’s growth to come to a standstill while driving 11 million more people in East Asia into poverty, the World Bank warned Monday.
The pandemic is causing “an unprecedented global shock, which could bring growth to a halt and could increase poverty across the region,” said Aaditya Mattoo, World Bank chief economist for East Asia and the Pacific.
Even in the best-case scenario, the region will see a sharp drop in growth, with China’s expansion slowing to 2.3 percent from 6.1 percent in 2019, according to a report on the pandemic’s impact on the region.
With two-fifths of the world’s population under some form of lockdown that’s caused the shuttering of businesses and a slowdown in transportation to try to contain the virus, the country where the outbreak originated may escape a recession but will nonetheless suffer a sharp slowdown.
Just two months ago, the World Bank’s economists forecast China would grow by 5.9 percent this year, which would have been its worst performance since 1990.
Now the world’s second-largest economy faces a more dire outlook, reflected in the record contraction in manufacturing activity in February and industrial production that fell for the first time in 30 years.
(With inpust from agencies)
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