Coronavirus to impact global economic growth, says World Bank President David Malpass

World Bank President David Malpass has said global growth forecast will be revised downwards due to the coronavirus outbreak which has affected global supply chains. Malpass said the coronavirus outbreak posed a real threat to World Bank's last month's prediction on the global economic growth. Malpass said that for at least H1FY2020, there will be a lowering of the said forecasts.

"A lot of Chinese goods come out to the rest of the world in the belly of aircrafts that are carrying passengers," said Malpass, pointing out the impact of global airlines suspending their China flights. The World Bank head stated that supply chains have to be adjusted to be able to get goods out "to make the products that the whole world economy is operating on".

The World Bank Economic Outlook reported in its Global Outlook that global growth is expected to increase from 2.4 per cent in 2019 to 2.5 per cent in 2020.

Malpass made the remarks while speaking about the Economic Outlook with the former chairwoman of the US Federal Reserve Janet Yellen. Yellen also agreed that coronavirus would negatively impact global growth. She said that the virus "seems certain to have a significant effect at least for a quarter or two".

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