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World Bank to lower global growth forecast over Coronavirus outbreak

World Bank to lower global growth forecast over Coronavirus outbreak

As the deadly disease, coronavirus is spreading all over the world from China, World Bank President, David Malpass has disclosed that the multilateral lender will slow down its global growth forecast.

The global growth forecast, according to Malpass, will be revised downwards amid fears that the epidemic will harm global supply chains.

It is, however, pertinent to note that the World Bank had forecasted a rebound in global growth this year (2020), following the ease of trade tensions between the United States (U.S.) and China that had contributed to a decline in 2019.

Amid fears and tension, the World Bank president warned that the coronavirus that is responsible for the shutting down of many businesses and borders posed a threat to the prediction.

“There will be a lowering of forecasts for at least the first part of 2020, in part due to China, in part due to the supply chains.

“A lot of Chinese goods come out to the rest of the world in the belly of aircraft that are carrying passengers,” Malpass was quoted as saying.

 

The World Bank president added“as airlines worldwide have suspended flights to and from China and some of its neighbours have shut their borders, you need to adjust the supply chains in order to get the goods out to make the products that the whole world economy is operating on.”

Prior to the outbreak of the disease in China, the World Bank economic outlook had predicted that the world economy would grow to 2.5% in 2020 from 2.4% it was last year.

What you should know: Many businesses across the world have been shut down, and countries are preventing goods and people into their territories from China, as the deadly virus, which started from Wuhan, is spreading across the world. At least, 107 people have been confirmed dead as a result of the virus while 4,600 other people have been quarantined

source:-.https://nairametrics.com/2020/02/05/world-bank-to-step-down-global-growth-forecast-amid-coronavirus-concerns/