Coronavirus to leave 'lasting scars' on developing world, warns World Bank

The World Bank warned today coronavirus and resulting recessions will leave “lasting scars” on developing and emerging market countries, with the worst damage on oil exporters and those suffering financial crises.

In analytical chapters of its new Global Economic Prospects report, the bank said that the average emerging market country suffering a financial crisis could see potential output fall by 8% over a five year period, with lost output for developing oil exporters falling 11%.

South Asia could be one of the worst hit regions with India likely to record its worst growth performance in four decades this year due to the coronavirus outbreak.

Other than India, the World Bank forecast that Sri Lanka, Nepal, Bhutan and Bangladesh will also see sharp falls in economic growth.

The Bank said rich countries, institutions and the private sector should do more now to help developing countries manage their response to the pandemic, speed up the recovery process and avert a solvency crisis.