There's a new warning that the coronavirus pandemic could have a devastating impact on the UK's economy. The Office for Budgetary Responsibility, the government's independent economic watchdog, says that if the lockdown lasts for 3 months the economy could shrink by 35% and unemployment could rise to 10% meaning two million people would be out of work. A forecast by the UK's tax and spending watchdog suggests the coronavirus crisis will have "serious implications" for the UK economy, Chancellor Rishi Sunak has said. The Office for Budget Responsibility (OBR) warned the pandemic could see the economy shrink by a record 35% by June. Sunak stressed that the forecast was only one possible scenario. However, he said that while the government could not protect every business and household, they came into this crisis with a fundamentally sound economy, powered by the hard work and ingenuity of the British people and British businesses.

"These are though times and they’ll be more to come but we came in to this crisis when they will fundamentally sound economy. I wish I was not see these numbers and DP trouble. I think this going to be hard, our economy will get a significant hit  and I said before that’s non abstract thing that people will feel that in their job and in their household incomes. Two point about generation now, I’m very much hopefull that the measures that we put in place will allow us to do what OBR said bounce back" Sunak said.  

Meanwhile Robert Chote of the office for budget responsibility (OBR) said that a three-month lockdown followed by three months of partial restrictions would trigger an economic decline of 35.1% in the quarter to June alone, following growth of 0.2% in the first three months of this year. A drop of this magnitude would be the largest in living memory.

"If you see the short of declining in GDP that we think it will be consistant with three month lockdown then you wouldn’t see a quarterly falling economy like that in living memory. The hope now that this gonna be temporary rather then permanent problem and we don’t end up staring the  long term potential of the economy" Robert Chote stated

While the UK economy would contract by 12.8% this year under this scenario, it is expected to get back to its pre-crisis growth trend by the end of 2020. The OBR stressed the actual amount of growth would depend on how long the lockdown lasted, as well as how quickly activity bounced back once restrictions were relaxed. In any case, it expects half of any sharp drop in growth in the second quarter to be reversed in the three months to September as the economy starts to recover//NK

To discuss the impact of Covid-19 in the Southeast Asian region, ASEAN country leaders held a virtual ASEAN Special Summit chaired by Vietnamese Prime Minister Nguyen Xuan Phuc on Tuesday (April 14). As quoted from Channel News Asia (CNA), Vietnam at the meeting urged leaders in Southeast Asia to set up an emergency fund to tackle the coronavirus as the pandemic ravages the region's tourism and export-reliant economies.

In opening remarks via videoconference, Vietnam's premier Nguyen Xuan Phuc hailed the work of ASEAN in fighting the virus so far.

“All ASEAN members have exerted great efforts in fighting Covid-19, which has badly impacted people's life, socio-economic situation, especially the service sector, which takes 30 percent of GDP of ASEAN, challenging stability and social security. ASEAN’s efforts have brought about encouraging results, controlling the pandemic and number of infected cases among its 650 million people, which is around 15.000 cases, slower increase as compared to the global average rate. This initial result has raised our confidence but we should be vigilant, we need to be more solidarity and determined in action,” Vietnam's premier Nguyen Xuan Phuc said in his remarks.

On the same occasion, Singapore Prime Minister Lee Hsien Loong said that to build resilience for future economic shocks, countries in the region should have common criteria on travel and trade restrictions.

“It will be useful for ASEAN to have a set of common criteria or guidelines on when to impose travel or trade restrictions and when and how we can relax them and with what appropriate safeguards. We each have our own domestic considerations but clear guidelines would help us take a balance rational approach that takes into account both health and economic considerations. The ASEAN Coordinating Council working group on public health emergency should study this issue,” said Singapore Prime Minister Lee Hsien Loong 

Prime Minister Lee emphasized that ASEAN countries should maintain trade among themselves and persuade their partners to keep trade flowing. Malaysia and Singapore have kept goods flowing although Malaysia has extended its movement control order to April 28 and Singapore is in circuit breaker mode until May 4. In the meeting, the ASEAN leaders issued a declaration which proposed the establishment of a COVID-19 ASEAN Response Fund to boost emergency stockpiles for future outbreaks, while pledging further co-operation among member states and voicing commitment to keeping ASEAN’s markets open for trade and investment. (CNA/NK/AHM)

Russian President Vladimir Putin has said the military could be deployed to help tackle the coronavirus outbreak, after the number of cases in the country rose sharply. As stated by BBC.com (13/4). He told government ministers that "all the capabilities" of the Russian military "can and should be used". His comments came as Russia recorded its largest daily rise in confirmed cases, with 2,558 new infections. It brought the total to 18,328, with the vast majority of those in Moscow. President Putin said during a video meeting with top officials on Monday that  his side sees that the situation is changing almost daily and, unfortunately, it is not changing for the better. He added the number of sick people is increasing, including more and more cases specifically of the severe form of the disease. The next few weeks will be decisive in many respects//BBC

The British government warned Monday it would not be lifting a nationwide lockdown anytime soon as the country remains in the grip of a coronavirus outbreak that has claimed more than 11,000 lives. As quoted by AFP.com (13/4)  Foreign Secretary Dominic Raab, who is deputizing for Prime Minister Boris Johnson as he recovers from his own bout of COVID-19, said there were some "positive" signs of progress. But he warned at a daily media briefing that the government is  still not past the peak of this virus.The government must decide by Thursday whether to maintain three-week-old rules to keep schools and shops shut and order people to stay in their homes to try to stop coronavirus spreading//AFP