Actions taken by 12 countries to minimize economic impact from COVID19 APRIL 02, 20204 MIN READ
Actions taken by 12 countries to minimize economic impact from COVID19

United States

The US Senate has passed a $2 trillion coronavirus disaster aid bill that is the largest economic stimulus in the US history. The plan includes direct payments of $1,200 to most American adults and aid to help small businesses pay workers. Additionlaly, a federal bailout bill aimed at keeping the conomy afloat during the coronavirus pandemic would provide $114 billion to prop up transporation networks that have been financially battered as passengers have stayed home. The funding would support airlines, airports, transit agencies and Amtrack.


Germany signed off on taking on billion in new debt as part of an unprecedented package totaling more than 750 billion euros to cushion the fallout from the coronavirus pandemic. Germany has also agreed to set up a 600 billion-euro rescue fund to provide virus-hit companies with loans and guarantees as well as buy stakes in stricken businesses. The fund consists of 400 billion euros in guarantees, 100 billion euros to ail out companies and 100 billion euros for state-backed loans.


China is implementing $344 billion of mainly fiscal measures in its fight against the coronavirus outbreak. The money already spent includes 1 trillion Yuan ($141 billion) in tax reductions, as well as liquidity released through targeted tools.


India announced a $22.6 billion spending plan as part of measures to ease the economic impact of coronavirus pandemic on the poor in the world's most populated nation after China. 


Portugal announced on Thursday a set new measures to help families and companies cope with the coronavirus outbreak, including a six-monh suspension of the payment of loan installments. The country's economy minister Pedro Siza Vieira also announced that all loans expiring in the next six months will be suspended until September 2020. 


The Swiss government and Swiss National Bank will beging pouring money into a sharply economy hit hard by the coronavirus epidemic.


Japan pledged huge stimulus involving a spend of at least $137 billion financed in part by deficit-covering bonds, joining gloal efforts to cushion the eocnomic blow from the coronavirus pandemic. While the amount of debt issurance is likely be modest, it will put considerable market focus on Jan's dire fiscal position.


South Korea doubled a planned economic rescue package to $80 billion to save companies hit by the coronavirus and put a floor under crashing stocks and bond markets.


Thailand will launch a package of stimulus measures worth at least $3.56 billion to try and mitigate the impact of the cornavirus outbreak that has infected more than 800 people in the country. Thailand introduced measures, including a liquidity support fund worth ($2.14 billion to $3.06 billion) to reduce risk in the debt market amid the spread of the coronavirus outbreak. Thai financial institutions are still strong with high liquidity and authorities will ensure sufficient liuidity and the funcintioning of the debt market.


Singapore has set aside another $33.17 billion to support its businesses and households after official preliminary estimates showed the Southeast Asian economy shrinking by more than expected in the first quarter of this year. The additional spending on stimulus came just a month after the country announced 4.4 billion of economic and health-care measures to tide through the ongoing coronavirus pandemic. Together, the two support packages account for aournd 11% of Singapore's gross domestic product.


The Trudeau government's $82 billion emergency coronavirus support package has officially passed. The new emergency benefit combines two benefits the government had announced last week. It will give $2000 per month to those who have lost their income because of the pandemic for four months, including those who are self-employed or have to take care of ill dependents.


The UK government offered to pay self-employed workers cash grants of as much as 2,500 pounds a month in a bid to stem the economic fallout from the coronavirus. The self-employed will be able to access a business interruption loan program, delay their tax payments and access universal credit beneifts.

Source: International Monetary Fund

By Apr 2, 2020