Global coronavirus economic stimulus is currently at $19.5 trillion
#1
Governments and central banks have promised $19.5 trillion since the coronavirus erupted to "put a floor under the world economy," according to the International Monetary Fund. Some countries need even more help to recover from the crisis, but they might not get it.

Governments have announced nearly $12 trillion in stimulus measures as of September and central banks have chipped in at least $7.5 trillion to soften the impact of the pandemic on their economies, the IMF said in its annual report on Monday.

Yet despite the unprecedented scale and speed of the rescue, which cut taxes, paid wages, granted loans to small businesses and took interest rates to record lows, the global economy is suffering the worst recession since the Great Depression. Economic activity and employment in large parts of the world, including in the United States and Europe, remain well below levels seen before the pandemic hit.

While coronavirus vaccine candidates point to improved prospects for the global economy next year, they won't help countries much in the immediate future. And roadblocks to securing additional financial support could damage the already fragile recovery.

Quote:"Countries now face a long ascent that will be difficult, uneven, uncertain and prone to setbacks," said IMF Managing Director Kristalina Georgieva.


In the United States, the number of virus cases is exploding. The country is still down some 10 million jobs since before the pandemic began and several states are now imposing fresh restrictions to curb the rise in cases, which will further weigh on the recovery.

Economists say that dialing back government support too soon will undermine the strength of the recovery from the pandemic. While central banks are expected to unleash even more stimulus to try and juice their economies, they lack an established channel to send money directly to households.

Quote:Withdrawing fiscal support prematurely is "the biggest risk" facing economies in the short term, according to Neal Shearing, group chief economist at Capital Economics.

"This would be a self-defeating mistake," he said in a research note on Tuesday.

That's because an extended period of weak demand, which large scale fiscal stimulus has mitigated, poses the greatest threat to economic growth, he added.



https://www.msn.com/en-us/money/markets/...r-BB1b611M
Reply


Possibly Related Threads…
Thread Author Replies Views Last Post
  China tops US to take research crown at global chip conference Resurgence 0 5,904 Nov 21, 2022, 15:06 pm
Last Post: Resurgence
  Africa slams West over asking the continent to pay $2.8 trillion for pollution Resurgence 0 5,600 Nov 16, 2022, 14:05 pm
Last Post: Resurgence
  Top five most valuable tech companies in US have lost $4 trillion in value Resurgence 0 4,834 Nov 10, 2022, 14:00 pm
Last Post: Resurgence
  Italy: Mortgage payments suspended during coronavirus lockdown Resurgence 1 11,588 Jul 12, 2022, 08:08 am
Last Post: Bohet
  Ecuador’s Indigenous groups protest against economic policies Resurgence 0 5,193 Jun 15, 2022, 01:28 am
Last Post: Resurgence



Users browsing this thread: 1 Guest(s)