COVID-19 Prediction /COVID-19 Great Recession
Today the media is flooding with highlights, COVID-19 great recession. Bill Gates, in 2018, had predicted a recession-related to viruses. In an interview, in 2018, Bill Gates said: Bill Gates in April 2018: “There is one area, though, where the world isn’t making much progress, and that’s pandemic preparedness. This should concern us all because if history has taught us anything, it’s that there will be another deadly global pandemic.” Here we are, two years later, a new virus emerged and a state of a pandemic is declared. The COVID-19 pandemic is claiming thousands of lives and brought economies to a standstill, and put nations in chaos.
Globally, the novel virus has caused socioeconomic deterioration The most affected are poor countries, and they are the ones whose recovery will take many years. The United Nations Development Program released a recent report emphasizing the lost incomes in poor countries. They predicted a loss exceeding $220 billion. For instance, India’s losses started after being on lockdown for more than 3 weeks. In India, laborers and unregistered workers are the backbones of the Indian economy. Thousands of young workers in Delhi are on daily wages. After the lockdown, they left with their families the capital to the countrysides.
Global Impact / COVID-19 Great Recession
In China business slowed dramatically. The United Nations has estimated global economic losses of $2 trillion. In Toronto, the Royal Bank of Canada has forecasted a recession after the hit of the novel virus. The impact will be seen in oil prices plunge. They also predicted economic growth of up to 0.8% in the first quarter of the year. All RBC forecasts are based on the assumption that the pandemic of COVID-19 will end at the end of the first half of the year. Yet, the recovery f the economy will be obstructed by persistently low prices. The bank also cut its key interest by 0.5%.
Social & Economic Link
The USA – According to Mark Zandi, chief economist at Moody’s Analytics, social distancing is equal to economic distancing. What does that mean? When people do not go to restaurants, molls, or workplaces, there is a lack of goods and a shortage of supplies which mean economy losses. Since the pandemic in the US, there is an unprecedented loss of jobs. The US Senate passed a disaster funding package.
1.The International Monetary Fund (IMF)
The International Monetary Fund consists of 189 members and 90 of them have asked for funding because of the pandemic. The IMF declared a world recession and predicted a way worse recession than in 2008. Kristalina Georgieva, IMF managing director, announced a global recession and called countries with advanced economies to coordinate their efforts to support countries with developing markets
2.The International Monetary Fund (IMF)
A helping hand will be given in the impacted by COVID-19 economic and health sectors. Georgieva said, the International Monetary Fund, suggested to China and other official creditors to temporary (at least for one year) stop the debt collections from underprivileged and poorest countries. China agreed to be engaged in the proposal. The IMF will continue to work on a specific project with the Paris Club and the major 20 advanced economies in the world. The idea of this project is to discuss with the creditors (commercials and officials) both a support plan and a possibility for debt reduction of the poorest countries affected. The IMF demanded the emergency fund be used for strengthening the health system, such as frontline healthcare workers and personal protective equipment.
3.The International Monetary Fund (IMF)
The IMF managing director, Georgieva, announced that the IMF is ready to hand out $ 1 trillion to countries in need. They started allocating the funds to requesting countries. Georgieva also said the central banks and finance ministers have already taken measures to mitigate the financial effect of the pandemic on the emerging markets. She also urged the central bank to offer trades line to the developing economy.