Global economy is stuck and a worldwide effort would only hold it from further disaster. Several poor and developing nations request IMF help to beat the coronavirus recession. 5 Trillion USD injected to meet the global crisis. The situation worldwide can be recovered in 2021. Only the climate is expected to take a deep breath amid the ban and lock-downs.
Kristalina Georgieva, the International Monetary Fund Chairman, said that a global recession is already hit the economy and it would be much more worse than whatever we have experienced in the 2009 crisis. If the virus is not contained fully in a couple of months, situation would become more terrific and poor nations would become bankrupt. If the virus is contained shortly, the crisis could be beat by 2021.
The global leaders have already contributed to the economic rescue. A total of $5 trillion is announced to sustain the economy and prevent form bankruptcy. The G20 leaders are still in discussion on how to boost the economy from the crisis. The countries that primarily depending on exports, tourism, and manufacturing are to be hit first. The people who can work from home with the help of technology would continue to meet the daily needs whereas those who live in the streets and daily wagers would go without food and water. Sickness, depressions, piled up rents and others would make situation very critical. The vulnerable businesses and people would suffer extensively and overcoming the financial implications caused by the pandemic would be worth seeing.
Governments will be forced to control the spending and stock markets would take time to regain their momentum. Smaller businesses and retailers would find it difficult to run the business as people would not come out to buy things. Shops selling food, medicine, and other essential items would continue to make money and all other departments would remain closed.
The G20 has announced several policies for recovering from the economic crisis along with the announcement of a $5 trillion dollar package. Some of the policy contents include monetary stimulus where the federal funds would be cut, calculated purchase of federal bonds, repurchase agreements, easing bank capitals, bridging loans, helping with the credit flows, offering further credits to SMEs, budget to help severely hit industries, lending cheap loans to banks, cutting down the discount rates, allowing fiscal bonds and targets, and freeing up other budgets.
Essential medical goods, food, and other important items must be transported to poor nations and Africa would be a priority as the number of refugees is larger and they require much more attention. G20 has to keep the confidence of its members and importance of supplying medial goods. As the coronavirus has hit all nations, travel ban, lock-downs, and prevention of spread has caused a halt to the global supply chain. Countries will have to practice cost reduction strategies, operational controls, and united measure to tackle the recession.
All these measures would be effective depending on how soon we would be able to defeat the virus and governments are taking strict measure to ensure that individuals are not causing the spread with heavy fines and penalties. A massive funding will help countries to beat the recession and control the coronavirus outbreak.
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