World Bank: Coronavirus pandemic to leave lasting scars on developing countries

Recession combined with the financial crisis would cut potential output in average emerging market countries by 8% over 5 years, the World Bank said in a report on Tuesday.

"Average potential output loss in emerging market oil exporters to reach 11% over 5 years," the publication further read. "The coronavirus pandemic will leave lasting scars on developing countries, eroding productivity, potential output."

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the Dow Jones Industrial Average and the S&P 500 were up 0.55% and 0.3%, respectively.